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MBHASHE LOCAL MUNICIPALITY
AUDITED ANNUAL REPORT 2017-2018
2 |Audited 2017/18 Annual Report
TABLE OFCONTENT
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
COMPONENT A: MAYOR’S FOREWORD & EXECUTIVE SUMMARY 7
COMPONENT B: MUNICIPAL MANAGER’S overview 11
1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW 23
1.6 AUDITOR GENERAL REPORT 24
CHAPTER 2 – GOVERNANCE 26
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 26
2.1 POLITICAL GOVERNANCE 26
2.2 ADMINISTRATIVE GOVERNANCE 29
COMPONENT B: INTERGOVERNMENTAL RELATIONS 31
2.3 INTERGOVERNMENTAL RELATIONS 31
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION 32
2.4 PUBLIC MEETINGS 32
2.5 IDP PARTICIPATION AND ALIGNMENT 36
COMPONENT D: CORPORATE GOVERNANCE 36
2.6 RISK MANAGEMENT 37
2.7 ANTI-CORRUPTION AND FRAUD 38
2.8 SUPPLY CHAIN MANAGEMENT 38
2.9 BY-LAWS 40
2.10 WEBSITES 41
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES 42
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 43
COMPONENT A: BASIC SERVICES 43
3.3 ELECTRICITY 44
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL,
STREET CLEANING AND RECYCLING 46
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3.5 HOUSING 50
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT 56
COMPONENT B: ROAD TRANSPORT 59
3.7 ROADS 59
3.8. TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION 63
COMPONENT C: PLANNING AND DEVELOPMENT 65
3.9 PLANNING 68
COMPONENT D: COMMUNITY & SOCIAL SERVICES 82
3.11 LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER 83
3.12 CEMETERIES & CREMATORIUMS 84
3.13 CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES 85
COMPONENT E: ENVIRONMENTAL PROTECTION 85
DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL PROTECTION) 89
COMPONENT F: HEALTH 91
3.16 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC. 91
COMPONENT G: SECURITY AND SAFETY 91
3.17 POLICE 91
3.18 DISASTER MANAGEMENT 93
COMPONENT H: SPORT AND RECREATION 94
3.20 SPORT AND RECREATION 94
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES 94
3.21 EXECUTIVE AND COUNCIL 94
3.23 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES 105
3.24. PROPERTY SERVICES ANDLEGAL SERVICES 111
COMPONENT J: MISCELLANEOUS 117
COMPONENT K: ORGANISATIONAL PERFORMANCE SCORECARD 117
SECTION A1: SERVICE DELIVERY PERFORMANCE FOR 2017/18 117
A1.1: SUMMARY OF ANNUAL ORGANISATIONAL PERFORMANCE RESULTS 117
SECTION A1: SERVICE DELIVERY PERFORMANCE FOR 2017/18 117
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A1.1: SUMMARY OF ANNUAL ORGANISATIONAL PERFORMANCE RESULTS 117
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE 163
(PERFORMANCE REPORT PART II) 163
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES 163
TOTALS, TURNOVER AND VACANCIES 163
4.2.1 POLICIES 165
4.3 INJURIES, SICKNESS AND SUSPENSIONS 166
4.4 PERFORMANCE REWARDS 169
COMPONENT C: CAPACITATING THE MUNICIPAL WORK FORCE 169
4.5 SKILLS DEVELOPMENT AND TRAINING 170
COMPONENT D: MANAGING WORKFORCE EXPENDITURE 172
4.6 EMPLOYEE EXPENDITURE 172
CHAPTER 5 – FINANCIAL PERFORMANCE 173
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 173
5.1 STATEMENTS OF FINANCIAL PERFORMANCE 174
5.2 GRANTS 175
5.3 ASSET MANAGEMENT 176
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS: T5.4.1-T5.4.9 176
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET 182
5.5 CAPITAL EXPENDITURE 183
5.6 5.6SOURCES OF FINANCE 183
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS 183
5.7 CASH FLOW 183
5.8 BORROWING AND INVESTMENTS 184
COMPONENT D: OTHER FINANCIAL MATTERS 185
5.9 SUPPLY CHAIN MANAGEMENT 185
5.10 GRAP COMPLIANCE 185
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS 186
OPINION 186
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REPORT OF THE AUDITOR-GENERAL TO EASTERN CAPE PROVINCIAL LEGISLATURE AND THE COUNCIL ON
MBHASHE LOCAL MUNICIPALITY 186
OPINION 186
BASIS FOR OPINION 187
EMPHASIS OF MATTERS 187
Restatement of corresponding figures 187
Irregular expenditure 187
Unauthorised expenditure 187
Fruitless and wasteful expenditure 187
OTHER MATTER 187
RESPONSIBILITIES OF THE ACCOUNTING OFFICER FOR THE FINANCIAL STATEMENTS 187
AUDITOR-GENERAL’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS188
REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT 188
INTRODUCTION AND SCOPE 188
KPA 2 – BASIC SERVICE DELIVERY AND INFRASTRUCTURE 190
KPA 3: LOCAL ECONOMIC DEVELOPMENT 191
REPORT ON AUDIT OF COMPLIANCE WITH LEGISLATION 192
INTRODUCTION AND SCOPE 192
Procurement and Contract Management 193
OTHER INFORMATION 195
INTERNAL CONTROL DEFICIENCIES 195
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (2017/18) 197
6.2 : AUDITOR-GENERAL REPORT 0 (2017/18) 197
GLOSSARY 208
APPENDICES 211
APPENDIX A- COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE 211
APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES 215
APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE 217
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APPENDIX D: FUNCTIONS OF MUNICIPALITY/ ENTITY 218
Powers and Functions 218
APPENDIX E: WARD REPORTING 222
APPENDIX F: WARD INFORMATION 231
APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 231
APPENDIX I –MUNICIPAL ENTITY/SERVICE PROVIDER PERFORMANCE SCHEDULE 235
APPENDIX J – DISCLOSURES OF FINANCIAL INTEREST 235
APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE 239
ANNEXURE K1: REVENUE COLLECTION PERFORMANCE BY VOTE 239
ANNEXURE K2: REVENUE COLLECTION PERFORMANCE BY SOURCE 240
ANNEXURE L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG 241
APPENDIX M: CAPITAL EXPENDITURE- NEW & UPGRADE/ RENEWAL PROGRAMMES 241
APPENDIX N: CAPITAL PROGRAMM BY PROJECT YEAR 0 241
APPENDIX O: CAPITAL PROGRAMM BY PROJECT BY WARD YEAR 0 242
APPENDIX P: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS 243
APPENDIX Q: SERVICE BACKLOGS EXPERIANCED BY THE COMMUNITY WHERE ANOTHER SPHERE
OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION. 243
APPENDIX R: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY 244
APPENDIX S: NATIONAL AND PROVINCIAL OUTCOME FOR LOCAL GOVERNMENT 244
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
COMPONENT A: MAYOR’S FOREWORD & EXECUTIVE SUMMARY
MAYOR’S FOREWORD
IT IS MY PLEASURE TO PRESENT THE 2018/2019 ANNUAL REPORT OF THE MBHASHE LOCAL
MUNICIPALITY.THE PERIOD UNDER REVIEW REMAINED CHALLENGING
INTRODUCTION
This year we celebrate the centenary year of two of our icons, Tata Madiba and Mama Sisulu. As
Mbhashe we embark on the task of fulfilling their generational mission, we stand on the shoulders
of these two giants. In their own way, these two icons of our struggle for a better and inclusive
South Africa fought hard to ensure that there was hope amongst our people, hence today we live
in a South Africa alive with possibilities.
ANNUAL REPORT 2018/2019:
IT’S AbOUT CLEAR STRATEGY
Based on the priorities by the community, the municipality developed objectives, strategies,
key performance areas and key performance indicators which were translated to
organizational performance plan.
As these priorities are ranging from functions that, the municipality is authorized to perform,
to functions that are responsibilities of other spheres of government and such as:
1. District municipality 2. Provincial Government and 3. National Government.
Our role then as a municipality has been to sensitize the District municipality and other spheres
of governments and influencing their priorities in line with the municipal priorities. The
performance highlights in this report will also then reflect these efforts.
This requires a fine balance between containing its re – prioritization in line with the
available resources and simultaneously investing sufficiently in human capital, infrastructure
and systems to ensure that services are delivered efficiently and cost effectively to all
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stakeholders. The performance highlights contained in this report are then firmly based on
the above applied principles by the municipality.
IT’S AbOUT PEOPLE AND CULTURE
The focal point at Mbhashe over the last three years has been on corporate culture change:
shifting to a municipality that excels in promoting social cohesion, stimulates economic growth and
sustainable development ,responding quickly and appropriately to its people’s requirements;
developing a total service culture across all key performance areas, supported by processes that
enable interaction between Mbhashe and its people to exceed their expectations; and building
mutually beneficial relationships based on integrity, ethical behaviour and trust.
We are all too aware of the wave of strikes – legal or not – that seem to have engulfed Mbhashe.
But what is not mentioned by pessimists is that social dialogue has worked even in cases where
this seemed impossible. The Roads & electricity strikes which were beginning to bring the
Mbhashe to its knees were resolved because of this commitment to social dialogue. The violence
and other acts of vandalism which we saw during the strikes should be condemned in the strongest
possible way.
As we move our country forward, it is important to reflect on our culture which is an untold story.
It should not just end with the beautiful attires which we put when we celebrate. Our diverse
culture should help us in promoting social cohesion amongst ourselves and also help us to deal
with the social ills in our different communities.
Our democracy is still at its youthful age and this affords us an opportunity as the society to sop up
the values which our democracy subscribes to.
On the other hand our Constitution, promulgated in 1996, provided the foundations for building a
democratic and inclusive state and is undeniably one of the most progressive in the world. While
we acknowledge that it did not take a day to build Rome, we are of the view that things such as
inclusive society and an inclusive economic growth are critical and should be achieved almost
immediately.
IT’S AbOUT EXECUTION
We acknowledged that in order for the Mbhashe to execute and roll out its approved strategic plan
and mandate and to be able to respond appropriately to the needs of its people, it is necessary for
the organisation’s ageing systems and processes to be more integrated and streamlined. The
municipality managed to install the infrastructure for the systems used and continues to grow and
has already assisted in enhancing the Mbhashe’s effectiveness and competitiveness.
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In the SONA on the 16th February 2018, The President indicated that “Our most grave and most
pressing challenge is youth unemployment.
It is therefore a matter of great urgency that we draw young people in far greater numbers into
productive economic activity. Our youth will be moved to the centre of our economic agenda.
They are already forming a greater proportion of the labour force on our infrastructure projects
and are the primary beneficiaries of programmes such as the installation of solar alternative,
refuse removal etc.
We continue to draw young people in far greater numbers into productive economic activity
through programmes such as the Business Start-up Programme, Product Development for SMMEs/
Cooperatives and many more.
Working in partnership with business, organised labour and community representatives, we are
creating opportunities for young people to be exposed to the world of work through internships,
apprenticeships, mentorship and entrepreneurship. Together with our partners in business, we
have agreed to create a million such internships in the next three years.
IT’S AbOUT LEADERSHIP
Mbhashe has resolved to play a leadership role and focus on ensuring that key strategic
operational issues are tackled through innovation, collaboration and partnerships with sister
entities, communities, the private sector and developmental organisations where relevant. This strategy paid
dividends with all the role players joining forces to ensure minimal interceptions and compliance with revised protocols.
IT’S AbOUT GOVERNANCE
Our democracy is anchored on the following pillars:
•Constitutionality
We subscribe to non-racism, non-sexism, social justice, fundamental human rights and the
democratic values of human dignity, equality and freedom as listed in the Bill of Rights, a
cornerstone of democracy in South Africa. South Africa’s path to mention building allows individual
culture, languages and identities to become building blocks of a greater whole.
•People-centeredness
Our policies and the constitution are people centred. They demand that we respect all our people,
honour our integrity and be committed to service delivery.
•Co-operative government
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Our constitution and policies calls for co-operation within different spheres of government.
•Professionalism and good institutional governance
Our constitution demands that as the government we should be accountable and transparent,
provide value for money, be customer-focused and strive for the highest service quality for the
benefit of the entire nation.
IT’S AbOUT TRANSFORMATION
During our last strategic review session it was resolved that transformation will be added as a
strategic pillar and programme in our Municipality and that existing transformation programmes
will be enhanced. These programmes assist resource-poor farmers to become export ready, and
train newcomers to agriculture (with a focus on youth and women) and many other initiatives
mentioned in this report. Our collaborative partnerships will help to strengthen these initiatives as
well as assist with efforts to transform the agricultural industry and other developmental
initiatives.
IT’S AbOUT EDUCATION
Education is a weapon to change the world, so said Tata Madiba. I cannot emphasize how much
each and every child should access quality education and critical skills through early childhood
development programmes until the tertiary education level with the available artisans’
programmes. Girl children in particular should be kept at school irrespective of the circumstances.
Es’kia Mphahlele believed that the regeneration of African consciousness is essential to real
African development and progress. African consciousness arises from the norms and values
inherent in the traditional way of life. The education our children are receiving today should not
alienate them from us, instead it should be such that our norms and values are reinforced.
MY LAST WORDS
I wish to extend thank you to our sister Departments, our Co-ops and NPOs for their continued
support and assistance during the period under review.
All that remains for me to do is to extend my gratitude to the Councillors, management and staff at
Mbhashe for their commitment and drive to ensure that Mbhashe delivers on its mandate even
during difficult times.
SAMKELO JANDA
Executive Mayor, Mbhashe Local Municipality
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COMPONENT B: MUNICIPAL MANAGER’S OVERVIEW
1.1 MUNICIPAL MANAGER’S OVERVIEW
The year under review covers the period 01 July 2017 until 30 June 2018. In terms of
legislation, the Municipal Manager is designated as the Accounting Officer, and he /she
must perform his/her functions in good faith, act with fidelity, honesty, integrity and in the
best interest of the municipality. The Accounting Officer as the head of Administration must
oversee the execution and implementation of all council policies. It give me pleasure to
reflect on the challenges and achievements of the municipality for the past year.
The five year term of office of the current Council will terminate when the IEC declares the
new councillors as elected. This implies the current 5 year IDP will lapse when the new
council is inducted. However, to provide for sustainable service delivery the newly inducted
council may decide to adopt the previous IDP, which is legally provided for in section
25(3)(a) of the Municipal Systems Act 32 of 2000 and this option is only available to the
new Council only at the beginning of its elected term and this year IDP was the first review
of this Council. The services in the annual report were aligned to the indicators stated in
the five year IDP and also the priorities of the Council.
The process of adopting the IDP for the year under review was proceeded by the
necessary public participation and community engagements.
The IDP as the Strategic planning tool for the municipality is measured with the following:
KPA 1: Municipal Transformation and Organizational Development
KPA 2: Basic Service Delivery
KPA 3: Local Economic Development
KPA 4: Financial Viability
KPA 5: Good Governance and Public Participation
A lot of work was done to ensure that the Indicators are SMART and the Service Delivery
and Budget Implementation Plan (SDBIP) hence the overall Institutional performance of 96%
was achieved (to be confirmed after the Performance Audit Committee meeting). A lot has
improved due to the fact that all vacant positions in the senior management level were filled.
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The municipality as a primary point of service delivery, is faced with tremendous
responsibility of ensuring good quality of life to the community of Mbhashe at large through
provision of basic services.
The main Service Delivery focus during the financial year was on the following areas:
Implementation and Monitoring of roads Maintenance Plan with use of in-house
construction plant in each unit
Construction of new gravel roads
Construction of Dutywa animal pound
Construction of second phase bridge at Qinqana Ward 17 Elliotdale
The start of one of the big projects which is Willowvale sports field
The construction of the two community halls at ward 15 and 24
The upgrading of street lights at Elliotdale
The performance of the municipality has been measured against the targets set out in the
IDP on a quarterly basis in a form of Service Delivery and Budget Implementation Plan. The
municipality is also proud of cascading down the PMS from Senior Management level to
lower levels within the institution even though it’s got its teething problems that are being
addressed.
The following plans and strategies were either developed or reviewed in 2017-18 financial
year:
Integrated Waste Management Plan
Local Economic Development Strategy
Spatial Development Plan
Coastal Management Plan
Integrated Community Safety Plan
Communication Strategy
Disposal of Municipal Land Policy
Roads Maintenance Policy
Roads Maintenance Plan
Institutional Development Policy
In order to attend to the challenge of poor revenue collection which is bedeviling all rural
municipalities, Mbhashe LM has reviewed its Credit Control and Debt Management Policy
and still utilizing the services of the service provider for debt collection which was
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appointed in the previous year. This resulted in an increase in collection albeit the
resistance from Rate Payers which is being managed.
There has also been an improvement in the following areas:
The municipality for the third time has received the Unqualified Audit opinion
Alignment of the IDP Scorecard and SDBIP with the assistance of the District
Municipality and Provincial COGTA
Training of MPAC organized by municipality and other spheres of government to
sharpen its oversight skills.
Functionality of both the Risk Committee and the Audit Committee
All the above confirms the municipality’s commitment to improve the good governance.
____________________________
Mr. M NAKO
MUNICIPAL MANAGER
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1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVRONMENTAL OVERVIEW
INTRODUCTION TO BACKGROUND DATA
ENVIRONMENTAL OVERVIEW
Mbhashe Local Municipality (EC 121) is a category B municipality which falls within the Amathole District
Municipality (ADM) and consists of 32 wards, 63 Councilors and 12 Traditional leaders after local
government elections. The municipality is strategically located in the South Eastern part of the Eastern
Cape Province, and is bound by the Qhora River in the south to Mncwasa River in the north along the
Indian Ocean.
Mbhashe Local Municipality (MLM) occupies a strategic geographic position within the Amathole District
municipality and covers approximately 3200 km² in extent (after the last national elections). There are
three main urban centres, namely Dutywa, Willowvale (Gatyana) and Elliotdale (Xhora). Dutywa is the
administrative head centre of the municipality. Mbhashe has earned the name from the beautiful river
called Mbhashe which flows from the banks of Ngcobo flowing through Dutywa, Gatyana (Willowvale)
and Xhora (Elliotdale). Mbhashe is comprised of the three towns of Dutywa, Gatyana and Xhora and
numerous rural settlements. The area also boasts the head offices of the AmaXhosa Kingdom at Nqadu
Great Place.
The municipality has total population of 254 909 with a household of 60 124 resulting to a household
size of 4.24 according to the 2011 Stats SA Census. This indicates that Mbhashe has an increase of
population and household by 1 537 (1%) and 6 925 (13%) compared to 2001 Stats SA Census resulting
a reduction in household size from 4.76 to 4.24. As per the 2017 Statistics (Source: IHS Markit Regional
eXplorer version 1479) Mbhashe has been reported as having a total population of 272 000 which is a 0.14%
increase as compared to the last statistics data that is available.
Based on the figure above, it can be deduced that the Mbhashe population is largely youthful with about
44% being children (ages 1 -14) of school going ages while another 29% can be regarded as youth
falling between ages 15 and 35. A total of 78% of the population of Mbhashe is composed of youth
between the ages of 0-34. It is imperative for Mbhashe to prioritize a substantial amount of those
programmes that talks to the Youth development. Social Needs and Special Programmes should
champion this exercise.
On the gender analysis, it has been established that, by and large, there is a fair balance between the
males and females, standing at 55% and 45%, respectively. The majority 98% of local inhabitants are
African with the balance shared between formerly classified White, Coloured and Indian people.
According to Community Survey 2007 an estimated population of over 95% reside in rural (communal-
traditional and village areas) and peri-urban (sprawl and informal settlements) areas. Mbhashe can be
regarded as a rural municipality.
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Population Details
Population '000
Age Year -2 Year -1 Year 0
Male Female Total Male Female Total Male Female Total Age: 0 - 19 68 64 132 68 64 132 68 64 132 Age: 20 – 29
17 19 36 17 19 36 17 19 36
Age: 30 – 49
15 25 40 15 25 40 15 25 40
Age: 50 – 64
10 16 26 10 16 26 10 16 26
Age: 65+ 8 13 21 8 13 21 8 13 21 Source: Statistics SA T 1.2.2
Source: Statistics SA
SOCIO-ECONOMIC STATUS
Socio Economic Status Year Housing
Backlog as proportion of
current demand
Unemployment Rate Proportion of Households
with no Income
Proportion of Population in Low-skilled Employment
HIV/AIDS Prevalence
Illiterate people older than 14 years
Year -2
33.00% 93.00% 14.00% 33.00% 9.20% 60.01%
Year -1
33.00% 93.00% 14.00% 33.00% 9.20% 60.01%
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Year 0
33.00% 93.00% 14.00% 33.00% 9.20% 60.01%
T 1.2.4
OVERVIEW OF NEIGHBOURHOOD WITHIN MBHASHE
SETTLEMENT TYPE HOUSEHOLDS POPULATION
TOWNS
Dutywa 1722 11075
Gatyana 1059 2 532
Xhora 639 2 280
Sub-total 3402 15 864
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URBAN POPULATION
Urban 110 70 6.2
RURAL POPULATION
Rural 239 045 93.8
Sub-total 250 115 100
INFORMAL SETTLEMENTS
Dutywa (GPO) 222 557
Dutywa (Zone 14) 459 1900
Gatyana (Police camp) 217 590
Agriculture 131 207
EmaBhaceni9 57 103
Sub-total 1086 3357
NATURAL RESOURCES
Major Natural Resource Relevance to Community
Arable lands High quality of soils suitable for crop production and
animal farming
Forest assets or existing vast traits of land for
future forestation
Existence of high demand for wood products with longer
return on investments
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Fisheries and Marine Proven untapped potential for aqua-culture business
Coastline natural beauty Undeveloped tourism offerings at coastline can be used
to solicit good revenue
Heritage tourism Heritage tourism can also bring more revenue in
community through the established routes as such
Phalo routes.
Mining Many communities in Mbhashe are endowed with
mining opportunities such as granite and sand, however
these communities are not licenced to mine. Such
opportunities need to be explored
COMMENT OF BACKGROUND DATA
The primary sector agricultural activities taking place in Mbhashe Municipality is mainly focused on very low
base crop production and livestock farming at subsistence can be improved. The sector is underdeveloped
and not diversified and had a subdued contribution to both the GDP and the GVA. Small-scale and
subsistence farmers in the Municipality are not producing at optimal levels, due to a number of constraining
factors. It is, therefore, important that emerging farmers are supported in expanding their farming activities
into viable and sustainable enterprises that will not only increase the income generated and jobs created by
these activities, but will also grow sufficiently to form the basis of further beneficiation opportunities. The
farming activities must also include the aqua-culture farming, forestry and animal farming.
The development of the Tourism industry at Mbhashe LM is based on giving people a reason to come, a
reason to stop, a reason to stay and a reason to spend. This means that any destination should first comprise
a unique and specific asset, that people should be made aware of this asset in order to attract them to the
destination, that they should be provided with a range of additional attractions and activities to ensure that
they stay in the area for longer, which will then ensure that their money is spent at the location.
Thus the municipality’s strategic thrust is therefore, aimed at stimulating the development of the Tourism
industry in Mbhashe Municipality, by taking full advantage of the unique cultural, coastal, historical and
natural assets found in the Municipality. The purpose is therefore to ensure that these tourism attractions
and activities are effectively developed and marketed, in order to establish Mbhashe Municipality as a unique
and worthwhile tourism destination.
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1.3 SERVICE DELIVERY OVERVIEW
SERVICE DELIVERY INTRODUCTION
ROADS
In terms of service delivery, Mbhashe Local Municipality managed to achieve the total number of 83 Key
Performance Indicators. On roads the Municipality constructed 30KM of new Roads (Ward 2 at Gwadana
5kms, Ward 6 at Nombulelo 5kms, Ward 6 at Sihlabeni 5 kms, Ward 9 Colosa acess 5kms, Ward 15 at
Pewula 1.5 kms, Ward 17 at Thalimofu 3.5kms, Ward 19 at Xhora Mouth to Ndalatha 5kms) and
maintained 315.1 KM of gravel roads, and Bridges in Qinqala Ward 17 Elliotdale and Vinindwa Ward 5
Dutywa are in construction and expected to be completed in 2018/19 financial year
Community facilities: 2 Community Halls in Ward 15 and 24 are in construction stage, one (1) sport
facility in Ward 25 is in construction stage and an animal pound in Ward 1 is in completion stage. The
municipality has also managed to complete its intended target of 1 Community hall that will be user
friendly to the community, and renovated 10 community halls.
In Electricity the municipality achieved 3531 connections of non- grid in addition to previous years of
3000 and as well as 3628 grid (INCLUDE ESKOM CONNECTION).
The municipality also managed to facilitate construction of 130 houses in Elliotdale in the 2017/18
financial year and the construction of 30 destitute houses in Madwaleni (Ward 32) and 100 destitute
houses in all 12 wards at Dutywa has started except Ward 1.
WASTE MANAGEMENT
Mbhashe municipality is responsible for providing Waste Management services to its areas of
jurisdiction. Waste Management Services is the main municipal service rendered by Mbhashe and as
such should receive the requisite attention from the institution.
Since the establishment of Mbhashe LM in 2000, this service has generally been provided to urban
areas and surrounding townships of Dutywa, Willowvale and Elliotdale. As from this financial year the
waste management services has been extended to all 32 wards of the municipality through rural waste
programme.
According to census 2011 report, Mbhashe is providing the waste management services to only not
more than 5% of its households. It also worth noting that the National Waste Management Strategy
enjoins all the Municipalities to have achieved waste management coverage by 2016. Mbhashe Local
Municipality in responding to NWMS the following was achieved.
I. 100% of urban households
II. 100% of rural households
III. 100% of waste disposal sites have permits
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Using the above figures as a measure of success, Mbhashe LM has succeeded in providing waste
management services across the municipality.
PROPORTION OF HOUSEHOLDS WITH ACCESS TO BASIC SERVICES
COMMENT ON ACCESS TO BASIC SERVICES
From the above diagram, 100% of the population of Mbhashe has access to the basic waste
management services. The Municipality underperformed on achieving the planned number of
Community Halls, Sport facility, and construction of bridges due to inclement weather and supply of
materials. In terms of waste collection, the municipality is serving all wards including rural areas.
Amathole managed to fast track rural sanitation in terms of VIP and providing water supply within
200m from each household, however there is still huge backlog for both water and sanitation.
1.4 FINANCIAL HEALTH OVERVIEW
FINANCIAL OVERVIEW
The Mbhashe Local Municipality has experienced financial difficulties due to failure to generate
sufficient income to meet operating expenses, debt commitments and maintaining service levels.
The budget deficit experienced at the end of 2016/17 financial year has resulted in cash flow
challenges which have resulted in delays in payment of service providers.
The outstanding creditors at year end were settled in 2017/18 financial year.
Outstanding debt is another concern for the municipality just as it is for all municipalities; therefore
one of our main priorities was to focus our financial turnaround on debt collection. To enhance our
debt collection processes the municipality utilized the services of a Debt Collector. This has yielded
positive results as the municipality has managed to collect 130% on rates revenue of current
budget projections by the end of the financial year. It is evident that the municipality has started to
recover long outstanding debt by following up on customer queries and stakeholder engagements.
However the municipality is still in the sound financial position and can be considered as a going
concern, as its current assets exceeded its current liabilities at year end.
0%
10%
20%
30%
40%
50%
60%
70%
YEAR 3 YEAR 2 YEAR 1 YEAR 0
electricity connections
water- available within 200m from dwelling
sanitation- households with atleast VIPservices
Waste collection- kerbside collection once aweek
21 |Audited 2017/18 Annual Report
Financial Overview: Year 0 R' 000
Details Original budget Adjustment Budget Actual
Income:
Grants 299 338 000 296 338 000 296 338 000 Taxes, Levies and tariffs
5 513 202 6 513 202 8 457 201
Other 115 279 906 70 704 906 40 798 001
Sub Total 420 131 108 373 556 108 345 593 202 Less: Expenditure 491 141 452 444 566 452 350 842 660 Net Total* -71 010 344 -71 010 344 -5 249 458
Operating Ratios
Detail %
Employee Cost 31%
Repairs & Maintenance 12%
Finance Charges & Impairment 16%
COMMENT ON OPERATING RATIOS:
Employee Costs
The employee costs are 31% of the total operating budget. This is within the threshold of 25% to 40%
guideline set by National Treasury. This allows the municipality to use its budget for other municipal
functions. The spending of the personnel was at 99% for the year under review, this was due to alignment
of EPWP personnel budget and implementation of stringent controls over additional allowances paid
over to employees.
Repairs and Maintenance
These costs are at 12% of the total budget. This is above the recommended threshold of 8% of the
operating budget. This improvement is due to the municipality having an approved road maintenance
plan, which has been quantified and is monitor on an ongoing basis.
Finance Charges
The non-cash items costs are at 16%. This is due to provision for depreciation and doubtful debt which
the municipality is required to budget for annually. The increase is due to additions to assets which have
been capitalised in the year under review. These non-cash items are not funded in the budget, this status
will have to be addressed in the coming years.
22 |Audited 2017/18 Annual Report
COMMENT ON CAPITAL EXPENDITURE
The original capital budget for the 2017/2018 amounted to R 77 867 140. During the adjustment
budget the capital budget was reduced to R 58 985 800 which is equal to 25% reduction of the
original budget with R 58 985 800 actual expenditure
67 874 120.00
141 929 623
77 867 140
90 204 951.00
144 022 073
58 985 80058 640 000.00
168 298 436
58 985 800
-
20 000 000.00
40 000 000.00
60 000 000.00
80 000 000.00
100 000 000.00
120 000 000.00
140 000 000.00
160 000 000.00
180 000 000.00
Year -2 Year -1 Year 0
Total Capital Expenditure
Original Budget Adjustment Budget Actual
Total Capital Expenditure: Year -2 to Year 0
R'000
Detail Year -2 Year -1 Year 0
Original Budget 141 929 623 158 211 413 77 867 140
Adjustment Budget 144 022 073 148 557 663 58 985 800
Actual 168 298 436 118 020 529 58 985 800
23 |Audited 2017/18 Annual Report
1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW
ORGANISATIONAL DEVELOPMENT PERFORMANCE
Mbhashe Local Municipality has embarked on a number of projects and programmes to improve its
performance. Its organisational structure is reviewed annually to ensure that it remains relevant to the
strategic objectives of the municipality as reflected in the Integrated Development Plan
The municipality has organisational structure which was last reviewed on the 28th June 2017. An
organizational structure review will ensure that the municipality continues to deliver on its constitutional
mandate and remains aligned with the IDP. The organisational performance at organisational level is
managed and evaluated through the Service Delivery and Budget Implementation Plan (SDBIP) top
layer, down to the departmental layer through departmental SDBIP. Performance Management has
been cascaded down from TG 16 up to TG 12. The National Treasury has identified officials in
municipalities who must have the prescribed minimum competency qualifications. This is aimed at
ensuring sound financial management in the local government sector.
The municipality has a workforce of approximately 264 permanent employees. The municipality has
managed to place 49 Interns. All Senior Managerial positions in terms of Section 56 have been filled.
Highlights Description
20 Job Descriptions submitted for evaluation 10 Job Descriptions evaluated and audited
1. CHALLENGES – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT
Challenge Actions to address Successful re-evaluation of job descriptions received on a regular basis from the different departments
Submit duly completed and signed job descriptions for re-evaluation to TASK Evaluation Unit/Committee and TASK Audit Unit/Committee
Full functioning of Occupational Health & Safety Overhead
Committee
Arrange OHSO Committee meetings every 3 months and
submit to Council Human Resource Plan not in place
Develop HR Plan and submit Non-submission of EE Plan for adoption before July
Develop EE Plan and submit to Council for adoption
1.5.2
Employees’ pension and medical aid
Information regard to employees’ pension fund and medical aid is reflected below:
Name of the Pension Fund Number of members
Name of medical aid societies
Number of members
24 |Audited 2017/18 Annual Report
Eastern Cape Group Municipal Pension Fund 86 Bonitas 39
CRF 77 Key Health
24
MEPF (Akani) 6 SAMWU Med
33
MCPF 0 Hosmed 69
1.6 AUDITOR GENERAL REPORT
AUDITOR GENERAL REPORT YEAR 0 (CURRENT YEAR)
The municipality has received an unqualified audit opinion with matters of emphasis in
2017/18 financial year. The emphasis of matters raised by Auditor general relate to:
i. Restatement of corresponding figures in the AFS, ii. Impairment losses and iii. Irregular
expenditure amounting to R136 million.
The municipality will start with the development of an audit action plan by the administration
that will be submitted to the Council for adoption which will be monitored continuously on a
quarterly basis by the all oversight structures of the council. This effort is done to ensure that
the municipality maintains the opinion where if possible would strive to improve the outcomes
of the Auditor general.
Relevant stakeholders will be consulted on the developed audit action plan so as to track the
attainability of actions to address the issues raised
A detailed report will be attached in Chapter 6 of the annual report as required.
1.7. STATUTORY ANNUAL REPORT PROCESS
MUNICIPAL ANNUAL REPORT PROCESS ACTION PLAN FOR FY 2017/18
Nr Description of activity Timeframe Actual
Date
Responsible
Person/
Department
1
Prepare Annual Report information as per the
National Treasury format including the Annual
Performance Report
10 July – 10
August 2018
Operations and
All Senior
Managers
2 Tabling of the draft Annual Report to the
Management team 13-Aug-18
Senior Manager
Operations
25 |Audited 2017/18 Annual Report
3 Tabling of the Annual Report to Audit
Performance Committee 17-Aug-18 MM
4 Tabling of the Annual Report to the Mayoral
Committee 20-Aug-18 MM
5
Council to submit un-audited Annual report to
MPAC for verifying of councils’ directive on
service delivery & senior managers (Section 56)
performance against signed performance
agreements
22-Aug-18 MM
6
Tabling of the un-audited Annual report to
Council. The Annual Report submitted complies
with the requirements of Section 121(3)(a-k).
29-Aug-18 Executive Mayor
7
Submission of un-audited Annual Report to
Auditor-General including the Annual Financial
Statements and Annual Performance Report
31-Aug-18 MM
8 Public participation process for Annual Report
in terms of Section 130 of MFMA
31 October – 2
November
2018
MPAC
9
Municipality considers AG's report on the audit
of the Annual Report and complies with Section
126 (5)
30 Nov 18 Municipal
Manager
10
Convening of the MPAC to consider the Annual
Report. This must be concluded within 7 days of
receipt of AGs report.
30 Nov 18 MPAC/Speaker's
Office
11 Executive Mayor tables audited Annual Report
and financial statements to Council 12 Dec 2018 Executive Mayor
12 MPAC tables the Oversight report to the Council 12 Dec 2018 MM/Speaker's
Office
13 Adoption of the Oversight Report by Council in
terms of Section 129 of the MFMA 12 Dec 2018 Council
14
Publicizing of the Annual Report for public
comments in terms of Section 127 (5) (a) of the
MFMA (after adoption by Council)
17 Dec 2018 Senior Manager
Operations
15
Publicizing of the Oversight Report as per
Section 21(a) of the Municipal Systems Act and
Section 75 of MFMA
17 Dec 2018 Senior Manager
Operations
16
Submission and circulation of the Annual
Report, Annual Financial Statements and
Oversight Report to Provincial Legislature in
terms of Section 132 (1 & 2) of the MFMA
17 Dec 2018 MM
COMMENT ON THE ANNUAL REPORT PROCESS:
26 |Audited 2017/18 Annual Report
There has been an improvement in the Annual report process for the year under review. The municipality
is currently working on setting up business processes that will ensure that quarterly performance reports
culminate into the annual report process.
In addition, an Annual performance report has been developed which also assesses the performance of
service providers for the year under review.
The annual report 0f 2017/18 was compiled in accordance with requirements of section 121 of the
MFMA, 56 of 2003 and section 46 of MSA, 32 of 2000 as well as the format prescribed by National
Treasury and the purpose of the report is
to provide feedback on the activities of the municipality
to provide a report on performance in service delivery and budget implementation for year end
to promote accountability to the community for the decisions made from July 2017 to June 2018
This Annual Report has been developed according to the provisions of circular 63 of the MFMA which
indicates that real transparency and accountability can only be achieved where there is a clear link
between the strategic objectives agreed with the community, the IDP, the Budget and SDBIP, in year
reports, Annual Financial Statements, Annual Performance Report and the Annual Report.
CHAPTER 2 – GOVERNANCE
INTRODUCTION TO GOVERNANCE
Mbhashe Local Municipality is constituted in terms of Section 12 read with Section 18 of the local
government Municipal Structures Act no 117 of 1998 and consists of 63 Councilors and 12 Traditional
Leaders. The Municipality is categorized as an Executive committee type of a Municipality. The
political arm of the municipality includes the Executive Mayor, members of the Mayoral Committee, the
Council Speaker and the Council’s Chief Whip of the Council.
In its most abstract sense, governance is a theoretical concept referring to the actions and processes
by which stable practices and organization arise and persists. These actions and processes may
operate in formal and informal organization of any size; and they function for any purpose, good or evil,
for profit or loss.
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE
2.1 POLITICAL GOVERNANCE
INTRODUCTION TO POLITICAL GOVERNANCE
Political governance in our municipality consists of the set of processes, customs, policies, laws and
institution affecting the way people direct, administer or control and organisation. It also includes the
relationships amongst the many players involved and the organisational goals.
27 |Audited 2017/18 Annual Report
The principle players include the communities, management and Councillors. Other stakeholders include
employees, service providers, customers, businesses, political parties, community organisations and
regulators
The Council operates on a Mayoral Type System. The following Support Committees have been
established in terms of Section 80 of the Municipal Structures Act to assist the Executive Mayor:-
COUNCIL
POLITICAL STRUCTURE (WITH PHOTOS)
1. Executive MAYOR: Cllr. Samkelo Nicholas Janda (ANC)
2. SPEAKER: Cllr. Babalwa Majavu (ANC)
3. CHIEF WHIP: Cllr. Mandla Sibingibingi (ANC)
2.
28 |Audited 2017/18 Annual Report
4. MPAC CHAIRPERSON: Cllr. Siphiwo David Kalityi (ANC)
MAYORAL COMMITTEE
5. Cllr. N Mlandu - No Portfolio (ANC)
6. Cllr. N Mkhedamo Portfolio Head - SPU (ANC)
7. Cllr. M. Mbomvu Portfolio Head - Community Services (ANC)
8. Cllr. M Mcotsho Portfolio Head - Infrastructure Services (ANC)
9. Cllr. X.O Willie Portfolio Head - Budget and Treasury (ANC)
10. Cllr. N. Ngomthi Portfolio Head - Corporate Services (ANC)
11. Cllr. C Genyane Portfolio – Good Governance and Public Participation (ANC)
12. Cllr. Mantshiyose Portfolio Head - Local Economic Development and Environment
(ANC)
Mbhashe Municipality comprises of a total of 63 Councillors of which 32 are Ward Councillors and the
other 31 are Proportional Representative (PR) Councillors. The Council also has 12 Traditional leaders.
Council continues to operate on an Executive Committee System. Out of 32 wards 30 wards are ANC
controlled whilst the 2 wards are controlled by Independent Councillors. As at end of June 2018 the
municipality had 62 Councillors due to the passing of one (1) ANC councillor in Ward 29.
COUNCILLORS
PARTY NAME NUMBER OF SEATS (Wards + PR)
WARD PR TOTAL
African National Congress 30 17 47
Congress of the People 0 1 1
United Democratic Movement 0 9 9
Democratic Alliance 0 2 2
Economic Freedom Fighters 0 2 2
Independent Councillors 2 0 2
TOTAL 32 31 63
Table 2.1.3
29 |Audited 2017/18 Annual Report
POLITICAL DECISION TAKING
The municipality has processes that take decisions up to the Council. The items that need decision start
from management, standing committees, Mayoral Committee and then to the Council. Each of the
Committees deliberate on matters that fall within the specific terms of reference of that particular
Committee as stipulated in the delegation framework, who in-turn make recommendations to the
Executive Mayor who works with the Mayoral Committee for approval, or where necessary for
endorsement by the Mayoral Committee for final approval by the full Council. Any matter that has
financial implications has to be discussed by the management before it is recommended by the
Executive Mayor and approved by the Council.
2.2 ADMINISTRATIVE GOVERNANCE
Municipal Manager is the head of the administration. Senior Manager Development Planning advises
Municipal Manager on matters of town planning, housing and Local Economic Development and
matters of land use management. Senior Manager Corporate Services advises MM on Human
Resource issues, HR management, ICT, document management and facilities, Chief Financial Officer
advises the municipal manager on financial management, supply chain management, financial
reporting and asset management. Senior Manager Infrastructure advises MM on roads and storm
water, electrification. Senior Manager Community Services advises MM on road safety and security
services, waste management, free basic services, disaster management and EPWP works program.
Senior Manager Operations advises MM on issues of governance, Integrated Development and in the
development of all strategic documents and on internal planning issues.
INTRODUCTION TO ADMINISTRATIVE GOVERNANCE STRUCTURE
30 |Audited 2017/18 Annual Report
The above diagram depicts the Senior management structure of Mbhashe and all posts were filled and other
senior management posts contracts were expiring during 2017/18 financial year and the process of filling the
posts commenced.
The Municipal Manager’s contract came to an end in August 2017 and the new Municipal Manager was appointed
in December 2017. Senior Manager Community Services his contract came to an end in February 2018 and the
position was filled in June 2018. Senior Manager Operations position became vacant from December 2017and
was filled in July 2018.
Departments and reporting are aligned to the Local Government 5 Key Performance Areas which are as
follows:
Service Delivery reporting is done by Infrastructure Development, Community Services and
Development Planning
Local Economic Development reporting is done by Development Planning
Municipal Financial Viability its Budget and Treasury Office that reports,
Municipal Transformation its Corporate Services and
Good Governance, which is mainly the Municipal Managers Office
MUNICIPAL MANAGER
SV POSWA
TG 25
SENIOR MANAGER INFRASTRUCTURE
DEVELOPMENT
NY MQOQI
TG 20
SENIOR MANAGER COMMUNITY
SERVICES
M MTONGANA
TG 20
SENIOR MANAGER DEVELOPMENT
PLANNING
CB MQINGWANA
TG 20
CHIEF FINANCIAL OFFICER
XC SIKOBI
TG 20
SENIOR MANAGER CORPORATE SERVICES
MP NINI
TG 20
EXECUTIVE SECRETARY
N MBOLA
TG 8SENIOR MANAGER
OPERATIONS
M. Nako
TG 20
31 |Audited 2017/18 Annual Report
Senior Management meets every Monday and an extended Management meeting is held on the first Monday
of every month. These meetings are mainly for planning, reporting and scheduling work.
COMPONENT B: INTERGOVERNMENTAL RELATIONS
2.3 INTERGOVERNMENTAL RELATIONS
INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS
Mbhashe Local Municipality remains totally committed to good governance. The organization is
structured in such a way that ensures that the eight major characteristics required for good governance
are enshrined in its operations. This ensures that a municipality is participatory, consensus oriented,
accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule
of the law. The municipality also takes the issue of Corruption seriously and is trying to minimize it, the
views of minorities are taken into account and the voices of the most vulnerable in society are heard in
decision-making. It is also responsive to the present and future needs of society. Above all, the
commitment from the leadership both political and administrative is essential to maintain good
governance.
The system that the municipality followed included processes through which the municipality’s objectives
are set and pursued in the context of social, regulatory, political, technological, economical and market
environment. These included mechanisms to monitoring the actions, policies and decisions of the
municipality and its service providers. These practices then are affected by the attempts to align the
interest of all stakeholders, including national and provincial government, district municipality,
businesses, non-governmental organisation, community based organisation and communities.
The municipality participates in the South African Local Government Association (SALGA)
conferences during the start of the term of councils where the leaders of the National Executive
Committee are being elected. The municipality also participates in the SALGA National Members
Assemble which is being held each and every year to check the status and progress of the resolutions
which were taken in the conferences, The municipality also participate in other structures, programs
and forums of the province such as SALGA working groups, EPWP provincial steering committee,
Provincial waste Forum and COGTA EC MIG Forum etc.
The municipality has a functional Intergovernmental Relations forum and has also adopted an IGR
cluster approach.
The municipality is participating in the Eastern Cape Provincial Political and Technical MUNIMEC. This
platform in our view is a relevant space to engage and unlock challenges facing municipalities in the
province.
RELATIONS WITH MUNICIPAL ENTITIES
The municipality has good relations with Amathole District Development Agency, trading as ASPIRE.
DISTRICT INTERGOVERNMENTAL STRUCTURES
There are forums that were established by the district municipality and Mbhashe municipality
participates in the forums of the district municipality such as DIMAFO which is attended by Local
Municipality Mayors, Municipal Managers, state owned enterprises and government departments that
32 |Audited 2017/18 Annual Report
are within Amathole. This forum assists municipalities to have the common understanding and be able
to discuss development issues that affect the district at large. There are also other forums at the
district level support team where the municipality is attending.
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION
OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION
The municipality has a relationship with its citizens that can take many forms. In some cases the
municipality has a legislative requirement to involve communities in its decision making. A majority of
municipal records and reports must also be accessible and available to the public. These reports
provide information about the services and activities of the municipality. The municipality has improved
on its public participation programmes as there are many community based meetings that were held in
the year under review. This is largely due to the detailed representation and understanding by
communities on programmes and decision making process in the municipal environment.
2.4 PUBLIC MEETINGS
COMMUNICATION, PARTICIPATION AND FORUMS
Mbhashe municipality has a comprehensive 5 year communication strategy developed in 2017 which is
reviewed annually. The municipality is also having the active website which is being updated on a regular
basis.
Public Participation and Communication
Public participation is a principle that is accepted by all spheres of government in South Africa.
Participation is one of the cornerstones of our democracy and has equal benefits for politicians, public
servants and civil society:
Consultation will help government make more appropriate decisions based on the real needs of
people
The more informed people are, the better they will understand what government is trying to do
and what the budget and resources limitations are
Public representation can only claim to be accountable if they have regular interactions with the
people they represent and if they consult and report back on key government decisions.
Government cannot address all the development needs on its own and partnerships are needed with
communities
Imbizo’s and public meetings are important methods used for consultation with the public and imbizo’s
are meant to encourage participation and allows the public from a particular area to interact directly with
the executive. Mayoral Committee conducts Imbizos annually to give feedback to communities where
government departments are expected to attend,
Public meeting and report-back meetings
Public representatives often use public meetings to inform the public issues or consult them around
specific development or other programmes. Public meetings are also to report back on government
33 |Audited 2017/18 Annual Report
programmes. Public servants maybe asked to participate in these meetings to provide technical support
and information and hear the public’s views and concerns.
Ward Councillors
Ward councillors are the representatives of specific geographic areas and are ideally placed to be the
link between the people and the municipality. They should bring people’s needs and problems to the
municipality and consult and inform the community around municipal services and programmes.
Ward committees
Ward committees are from different sectors in communities. Ten members are elected in each ward to
assist and advise the ward councillor and increase community participation. They can be very usefully
for spreading information, assessing needs, building partnerships, consulting the community and
picking up local problems with service delivery.
In the current year, the municipality has Ward Committees in all 32 Mbhashe wards
Community Development Workers (CDWs)
Community development workers are deployed by government to work in communities to make sure
that people can access government services. They have to give advice, help people with problems,
assess needs and work with local organisation to build partnership with government.
They usually know the community well, have good contact with organisationsl and can help to do
consultation, do research, spread information and monitor implementation. CDWs should work closely
with ward councillor and ward committees.
However the challenge that is facing the Mbhashe area is that in fourteen (14) wards there are no
CDW’s due to death or resignation and the Department of Local Government is taking a snail pace in
filing the vacant positions since 2010. This also impacts negatively in the implementation of “Operation
Masiphathisane” which is in another platform that was created by government to bring services to the
people and to enhance participation, and the absence of the CDWs in other ward handicaps this
initiative as CDWs are expected to be the secretaries in the war room meetings also known as
Operation Masiphathisane.
There is another platform for public participation that is used by the municipality which is called IDP
Rep Forums. The municipality also deals with public requests and complaints through a petition system
and customer care service where there is a unit within the municipality to deal with the complaints.
34 |Audited 2017/18 Annual Report
Public Meetings
Nature and purpose of
meeting
Date of events
Number of Participati
ng Municipal Councillor
s
Number of Participating
Municipal Administrators
Number of Community members attending
Issue addressed (Yes/No)
Dates and manner of
feedback given to community
MAYORAL IMBIZO
2017/11/15 4 10 150 PRIORITIES & ANNUAL PERFOMANCE
10-13 April
2018 the
feedback was
given to
communities in
a form of
roadshows
2017/11/16 18 10 170 PRIORITIES & ANNUAL PERFOMANCE
10-13 April
2018 the
feedback was
given to
communities in
a form of
roadshows
2017/11/17 18 10 195 PRIORITIES & ANNUAL PERFOMANCE
10-13 April 2018 the feedback was given to communities in a form of roadshows
IDP/BUDGET
ROADSHOWS
2018/04/10 12 10 180 IDP& BUDGET
The feedback
will be given in
the
IDP/BUDGET
Rep Forum
meetings
which will be
held in the
units for each
quarter in
2018/19
financial year
2018/04/11 18 36 180 IDP& BUDGET
The feedback
will be given in
the
IDP/BUDGET
Rep Forum
meetings
which will be
35 |Audited 2017/18 Annual Report
held in the
units for each
quarter in
2018/19
financial year
2018/04/12 18 32 150 IDP& BUDGET
The feedback
will be given in
the
IDP/BUDGET
Rep Forum
meetings
which will be
held in the
units for each
quarter in
2018/19
financial year
2017/04/13 18 28 175 IDP& BUDGET
The feedback
will be given in
the
IDP/BUDGET
Rep Forum
meetings
which will be
held in the
units for each
quarter in
2018/19
financial year
T 2.4.3
COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD
Mbhashe municipality has made every effort to ensure maximum participation by members of the local
community in the development of the IDP. The representative forum meetings in August, November
2017, March and May 2018 are held per unit and invite all the relevant stakeholders for that unit. The
communities are afforded an opportunity to engage with the presentations done by the municipality
and their comments or inputs are being consolidated to the final report. They involve interaction with
communities at ward levels and interactions with the reference groups which represented various
stakeholders of the municipalities.
A number of development challenges were raised during these interactions. These issues have in turn
been aligned with key development thrust for the municipality. The key development thrusts include:
Construction of roads and road maintenance.
Unemployment
36 |Audited 2017/18 Annual Report
Poverty eradication, rural and economic development and job creation
Financial sustainability (e.g. revenue enhancement)
Spatial development and the built environment
Human settlement
Public transport
Environmental Management and climate change
Social and community services
2.5 IDP PARTICIPATION AND ALIGNMENT
IDP Participation and Alignment Criteria* Yes/No
Does the municipality have impact, outcome, input, output indicators? Yes
Does the IDP have priorities, objectives, KPIs, development strategies? Yes
Does the IDP have multi-year targets? Yes
Are the above aligned and can they calculate into a score? Yes
Does the budget align directly to the KPIs in the strategic plan? Yes
Do the IDP KPIs align to the section 57 and 56 Managers Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes
Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes
Were the indicators communicated to the public? Yes
Were the four quarter aligned reports submitted within stipulated time frames? Yes
* Section 26 Municipal Systems Act 2000
COMPONENT D: CORPORATE GOVERNANCE
OVERVIEW OF CORPORATE GOVERNANCE
Corporate governance broadly refers to the mechanism, processes and relations by which corporations
are controlled and directed Governance structures identified the distribution of rights and
responsibilities among different participants in the corporation, and include the rules and procedures for
making decisions in corporate affairs.
Corporate governance includes the processes through which corporations’ objectives are set and
pursued in the context of the social, regulatory and market environment. Governance mechanisms
include monitoring the actions, policies and decisions of corporations and their agents. Corporate
governance practices are affected by attempts to align the interests of stakeholders.
For good governance practices these committees need support in relation to the following:
Integrated reporting and levels of independent assurance
How the combined assurance framework addresses all significant risks; and
The practicalities of how the risk committee works with the audit committee
37 |Audited 2017/18 Annual Report
In our endeavour to practice good governance, the municipality strives to implement the following
principles in all its activities:
Rights and equitable treatment of shareholders
Interest of other stakeholders
Role and responsibilities of the various committee’s members
Integrity and ethical behavior
Disclosure and transparency
2.6 RISK MANAGEMENT
RISK MANAGEMENT
Risk management is the systematic and formalized process to identify assesses, manage and monitor
risks. The unit has the responsibility of coordinating and supporting the overall institutional risk
management process. The process of identifying, assessing and managing risk remains the responsibility
of management.
Risk Management was introduced in Mbhashe Local Municipality during the 2010/2011 financial year
based on the legislative mandates and to derive the benefits that would enhance the effectiveness and
efficiency of the institution in meeting its obligation as stated below. The following risk registers are
available:
Risk Implementation Plan
Strategic Risk register
Operational Risk register
ICT Risk register
Fraud Risk register
Risk Management is institutionalized and has been implemented both at operational and strategic levels
in the Municipality. Operationally, each Department has a Risk Champion, consultative session taking
place and departments are reporting on risk on monthly basis. Operational risk registers are updated
monthly. Fraud risk registers are updated per department quarterly. Fraud and Anti – Corruption Policy
and Framework has been adopted by Council. Further to this and to fulfil information and
Communications Technology (ICT) governance requirements an additional separate ICT Risk Register
and Risk Champion exist.
Mbhashe Local Municipality had two risk committee meetings on 28 September 2017, 28 March 2018
during 2017/2018 financial year. Risk management has been institutionalized by departments which
involves monitoring of risk taking place on a regular basis.
38 |Audited 2017/18 Annual Report
During fourth quarter we conducted risk assessment, which is the process of quantifying or qualify levels
of risk, 13-15 June 2018 prioritize the most important risks. Inherent risks were assessed to establish
level of exposure and residual risks assessment to determine the actual remaining levels of risk.
When dealing with risk we checked the assessment tables wherein each risk is evaluated in terms of
potential impact. Risks which are irrelevant were removed from each department, some of the matters
have removed and transferred to other department.
We identified fourteen new strategic risks:
KPA 1: Inadequate ICT management and inadequate capacity.
KPA 2: Public protest and withholding of grants.
KPA 3: Unsustainable local economic growth and failure to attract investors.
KPA 4: Misappropriation of funds; negative audit outcome; financial and poor asset management.
KPA 5: Inadequate political oversight; fraud and corruption; inadequate planning; high exposure to
litigation.
2.7 ANTI-CORRUPTION AND FRAUD
FRAUD AND ANTI-CORRUPTION STRATEGY
The municipality developed an Anti-fraud and Anti-corruption strategy which is currently implemented.
Fraud risk registers are updated quarterly. Fraud and Anti – Corruption Policy and Framework has
been adopted by Council. Further to this and to fulfil information and Communications Technology
(ICT) governance requirements an additional separate ICT Risk Register and Risk Champion exist.
2.8 SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Section 3(1)(b) and (c) of the SCM Regulations states that the accounting officer of a municipality must
at least annually review the implementation of the SCM policy and when necessary submit proposal for
the amendment of the policy to council. Section 117 of the MFMA states that: “No councilor of any
municipality may be a member of a municipal bid committee or any other committee evaluating or
approving tenders, quotations, contracts or other bids, not attend any such meeting as an observer.”
The Accounting Officer established a committee system that is consistent with the MFMA and Municipal
SCM Regulations for competitive bids consisting of:
- A bid specification committee
39 |Audited 2017/18 Annual Report
- A bid evaluation committee
- A bid adjudication committee
Chapter 6 of the Municipal Regulations on Minimum Competency Levels states that: “The accounting
officer and any other official of a municipal entity involved in the implementation of the SCM Policy of the
municipal entity must generally have the skills, experience and capacity to assume and fulfil the
responsibilities and exercise the functions and power in respect of Supply Chain Management.” The
regulations indicate the minimum competency levels for Heads and Managers in Supply Chain
Management and Supply Chain Management Practitioners.
Supply Chain Management is centralized and situated in the Budget and Treasury Department with 5
permanent staff members, all five of them have completed the minimum competency requirements.
OVERVIEW SUPPLY CHAIN MANAGEMENT
The Supply Chain Management Policy was reviewed during the 2017/18 financial year and submitted
for approval by Council on the 31 May 2018. The SCM policy is currently fully aligned to the Regulations,
the few amendments to the SCM Policy was mainly to address the issue of deviations i.e payments to
educational institutions (in terms of the bursary policy), licensing of vehicles payments of subscriptions
to professional bodies (SALGA, IMFO, IIA etc) these were previously done through deviation and will
now be included in the policy.
Furthermore three other policies dealing with SCM were submitted for review with no proposed changes
and the policies are as follows: Commodity Based Procurement Policy, SCM Turnaround Policy and
Standard on Infrastructure Procurement and Delivery Management.
The Municipality utilized SAGE EVOLUTION ADVANCED PROCUREMENT SYSTEM which is one of
the modules of the integrated finance system for the day to day procurement of goods and services.
Between R30 000 and R200 000 a 7 day notice procurement process is followed with adverts placed in
the website as well as Municipal notice board in all three units (Dutywa, Elliotdale and Willowvale). Upon
closing, a register with all the relevant information is kept at the SCM office. The bids are then evaluated
and a report is compiled where recommendations are captured and approved.
Open tenders with the value of R200 000 and above follow the three Bid Committee System namely;
Bid Specification Committee, Bid Evaluation Committee and Bid Adjudication Committee. The
Committee members are appointed in writing by the Municipal Manager. The Municipal Manager has
strengthened the functioning of the bid committees by including members of management across all
three committees. Furthermore regular trainings are provided, this has resulted in all bid committee being
clear of their roles and responsibilities thus achieving full efficiency.
The PPPF Act thresholds (including regulations thereof), BBBEE Act and points allocation are applied.
The 80/20 split applied to all contract values below R50 million and 90/10 to all above R50 million, in line
with Preferential Procurement Regulations.
40 |Audited 2017/18 Annual Report
Contract Management
There is still room for improvement in so far as contract management is concerned, buy-in from
departments is also being sought to ensure that everyone plays a role in monitoring contracts. A
comprehensive contract register is in place and is monitored on a monthly basis to track spending and
performance on each contract.
Code of Ethics
All Supply Chain Management practitioners, and members of the three Bid Committees, are required to
sign a Code of Ethics as approved by Council annually. The approved code is based upon the Code of
Ethics issued by National Treasury. At all Bid Committee Meetings the members have to declare their
interests as part of the standing rules and approved terms of reference of the Bid Committees. New Bid
Committee members were appointed by the Municipal Manager to participate in the 2017/18 financial
year.
Training and Competency
In accordance with the requirements of Section 8 of the SCM Regulations, as well as Section 83 of the
MFMA, all SCM Practitioners must have a minimum level of competency, and the training of staff to meet
the requirements is on-going. All of the five (05) SCM permanent staff have met the competency
requirements.
General SCM Matters
The Supply Chain Management office is fully staffed and there were no vacant positions during the
financial year.
The SCM unit on a quarterly basis reviews transactions so as to investigate any instances of Irregular
Expenditure. The aim is to ensure that there is no new Irregular Expenditure incurred other than the one
recurring from previous irregular contracts. This is one of the steps to achieving a clean audit.
2.9 BY-LAWS
Accommodation Establishment By-law was developed in the 2017/18 financial year:-
The by-law was adopted by council as a draft, however public participation still has to be done before
the final approval and gazetting of such by-laws in the 2018/19 financial year.
The following By-laws were under review
Building Control By-law
Unsightly and neglected building By –law
Street Trading By- Law
Advertising By-Law
41 |Audited 2017/18 Annual Report
The above listed by-laws are waiting promulgation processes
Taxi and Taxi Ranks By-law
Liquor Trading Hours By-law
Traffic By-law
The by-laws were adopted by council as draft, however public participation still has to be done
before the final approval and gazetting of such by-laws in the 2018/19 financial year.
2.10 WEBSITES
COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:
Section 75 of the MFMA requires that municipalities place key documents and information on their
website, including the IDP, annual report, the annual budget, adjustments budgets and budget related
documents and policies. The municipality had a challenge with its website which was later rectified in
2017/18 and has since been functional, and documents are uploaded regularly.
Municipal Website: Content and Currency of Material
Documents published on the Municipality's / Entity's Website Yes / No
Publishing Date
Current annual and adjustments budgets and all budget-related documents Yes
Annual Budget 07 June 2017. Adjustment budget 06 February 2017
All current budget-related policies Yes 03 July 2017
The previous annual report (Year -1) Yes December 2017
The annual report (Year 0) published/to be published Yes January 2018
All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (Year 0) and resulting scorecards Yes
August 2017
All service delivery agreements (Year 0) Yes
All long-term borrowing contracts (Year 0) No n/a
All supply chain management contracts above a prescribed value (give value) for Year 0 Yes
An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during Year 1 Yes
Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to subsection (3) of that section
Public-private partnership agreements referred to in section 120 made in Year 0 No n/a
All quarterly reports tabled in the council in terms of section 52 (d) during Year 0 Yes
42 |Audited 2017/18 Annual Report
Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above. Municipalities are, of course encouraged to use their websites more extensively than this to keep their community and stakeholders abreast of service delivery arrangements and municipal developments. T 2.10.1
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
PUBLIC SATISFACTION LEVELS A Public Satisfaction Survey was conducted in May 2016 and a report thereof is available.
2.12 ALL MUNICIPAL OVERSIGHT COMMITTEES
MPAC
Audit Committee
43 |Audited 2017/18 Annual Report
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART
I)
INTRODUCTION
Basic service is the most key focus function of the municipality. In Mbhashe LM basic services is
provided by three internal departments, namely, Infrastructure Services, Community Services and
Planning & Development. Focus areas for basic services are as follows: municipal roads and storm
water, infrastructure community services (community halls etc), electrification (community lights &
households connection), solid waste, traffic, environmental management, libraries (agent for DSRAC),
disaster management function, land use management, building regulations and human settlements.
Water and Sanitation services are rendered by Amathole DM which is the Water Service Authority
(WSA) and also Water Services Provider (WSP).
COMPONENT A: BASIC SERVICES
INTRODUCTION TO BASIC SERVICES
3.1 ROADS
Mbhashe Local Municipality has some key service achievements that came to completion during the
year 2017/18 namely, the provision of 30KM of Roads and Storm Water that are of a good quality, safe
& trafficable as per applicable standards, total of 315.1 KM Roads were maintained, 2 No. of Community
Halls in Ward 15 and 24 are in construction stage, 8361,5m² of paving has been done, 45 hawkers
stalls have been installed at Ward 1, one sport facility in construction stage at Ward 25, and an animal
pound in Ward 1 is in completion stage. A total number 3531 households were connected with non-
grid through DOE in addition to previously installed 3079 household, moreover in INEP 967 households
were connected with grid.
The municipality also managed to facilitate construction of 130 houses in Elliotdale rural in the 2017/18
financial year.
3.2 WASTE MANAGEMENT
Although the Census 2011 information identifies Mbhashe LM as providing the waste management
services to only 4% of the total Mbhashe households, there has been a drastic change in the 2016/17
financial year. Full coverage of the area, including the rural areas, at an acceptable level of service (a
minimum of five times a week in the case of urban centers and the surrounding low cost and informal
settlements; three times a week in the case of rural areas), has been achieved. This arrangement far
surpasses the national norm of a minimum of once a week.
The main challenges is still with the management and operation of the landfill sites. Currently, Dutywa
and Willowvale sites are licensed for closure. Both Willowvale and Dutywa landfill sites have been
fenced in preparation for their rehabilitation. Aurecon is tasked with the rehabilitation and ultimate
closure of the two sites. The Dutywa Waste Transfer Station project that was constructed by ADM has
since been transferred to Mbhashe for final completion.
In the case of Elliotdale, the site is permitted to operate and the contractor has been appointed to
upgrade the site, but due to poor performance, the contractor was terminated.
44 |Audited 2017/18 Annual Report
3.3 ELECTRICITY
INTRODUCTION TO ELECTRICITY
ESKOM is the licensed distributor of electricity in the whole area of Mbhashe LM. Mbhashe,
therefore Municipality is not a licensed distributor of electricity; Integrated National Electrification
Programme (INEP) grant under Schedule 5 of Division of Revenue Act for household electrification
has been received by Mbhashe LM for Shixini and Ntsimbakazi Electrification Programme. As at
the end of 2017/18 financial year, there are approximately 322 households remaining at Shixini,
and 807 households remaining in Ntsimbakazi. There are additional number of villages from
Mnquma Local Municipality that has since been moved to Mbhashe LM due to demarcation which
has increased the Municipal backlog. Mbhashe Local Municipality is one of the municipalities in
the Eastern Cape that provides the communities with the Solar System (non-grid electrification)
where 3531 Households have been installed in 2017/18 financial year. According to the Stats SA
Census 2011, electricity is used by about 50% households for lighting, which says in other way
that the electricity backlog is about 29% 17771 households. Wood is used predominantly for
cooking and heating purposes at 40% and 50% households respectively, causing a high pressure
to environmental balance. For cooking, electricity is the most preferred form of energy at 37%
followed by paraffin at 15%. Paraffin and Candle are competing at 14% each for lighting next to
electricity. Paraffin and electricity are the second and third sources of heating at 23% and 15%
respectively. The overall situation of use of energy by households is presented in table and figure
at the right and hereunder.
Electricity Services Delivery Levels
Description
Year-3 Year-2 Year-1 Year-0
Actual No. Actual No. Actual No.
Actual No.
Energy: (above minimum level)
Electricity (at least min.service level) 40101.00 41033.00 43694.00 44661.0
0
Electricity - prepaid (min.service level) 40101.00 41033.00 43694.00 44661.0
0
Minimum Service Level and Above sub-total 80202.00 82066.00 87388.00 89322.0
0
Minimum Service Level and Above Percentage 100% 68% 100% 100%
Energy: (below minimum level)
Electricity (< min.service level) 20023.00 19091.00 16430.00 15463.0
0
Electricity - prepaid (< min. service level) 0.00 0.00 0.00 0.00
45 |Audited 2017/18 Annual Report
Employees: Electricity Services
Job Level
Year -1 Year 0
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 – 3
4 – 6
7 – 9
10 - 12 3 3 2 1 33%
13 - 15
16 - 18
19 - 20
Total 3 3 2 1 33%
Financial Performance Year 0: Street Lights
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue - -
- 0%
Expenditure:
Employees 488,596.00 596,529.00 596,529.00
596,526.00 0%
Repairs and Maintenance 389,950.00
2,104,000.00 1,757,643.00
1,727,616.00 2%
Other energy sources 30262.00 22170.00 16430.00 15463.0
0
Below Minimum Service Level sub-total 50285.00 412161.0
0 16430.00 15463.0
0
Below Minimum Service Level Percentage 60124.00 60124.00 60124.00 60124.0
0
Total number of households 83% 32% 27%
26%
46 |Audited 2017/18 Annual Report
Other 655,299.00 1,184,269.00 1,353,554.00
662,211.00 51%
Total Operational Expenditure 1,533,845.00
3,884,798.00 3,707,726.00
2,986,353.00 19%
Net Operational Expenditure -1,533,845.00
-3,884,798.00 -3,707,726.00
-2,986,353.00 19%
COMMENT ON ELECTRICITY SERVCES PERFORMANCE OVERALL
The allocation for 2016/2017 was R17m and the allocation for 2017/2018 is R14m & 2018/2019 is R8.9m
respectively. Mbhashe Local Municipality appointed Electrical Consultants for design and construction
of both projects (Shixini and Ntsimbakazi Electrification). Mbhashe Local Municipality requested to
Department of Energy for the use of own funds for electrification Programme to accelerate the household
connections. This decision was taken by the Council due to high level of community unrest so as to be
reimbursed by Department of Energy in the following financial years. There is a huge electrification
backlog of about 16430 households without electricity as per the updated list per village per ward as of
July 2017 (Ntsimbakazi and Shixini included).
The most electrification backlog in our municipality is in Elliotdale and Eskom electrification plan indicates
that some villages in Elliotdale will not be electrified in the next three years.
Due to electricity infrastructure capacity problems in the municipality especial in Elliotdale, the non-grid
electrification has been introduced by DOE to address the need, as it will take some time to build or
construct the required infrastructure to electrify the outstanding villages.
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE
COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND RECYCLING
INTRODUCTION TO WASTE MANAGEMENT
Currently, Dutywa and Willowvale sites are licensed for closure. Both Willowvale and Dutywa landfill sites
have been fenced in preparation for their rehabilitation. Aurecon is tasked with the rehabilitation and
ultimate closure of the two sites. The Dutywa Waste Transfer Station project that was constructed by ADM
has since been transferred to Mbhashe for final completion.
In the case of Elliotdale, the site is permitted to operate and the contractor has been appointed to upgrade
the site, but due to poor performance, the contractor was terminated.
The municipality is in the process of upgrading of the Elliotdale landfill site with the in house construction
plant planned to be completed in 2018/19.
47 |Audited 2017/18 Annual Report
Solid Waste Service Delivery Levels
Households
Description Year -3 Year -2 Year -1 Year 0
Actual No. Actual No. Actual No. Actual No.
Solid Waste Removal (Minimum level)
Minimum service level & above subtotal 2199 22199 60124 60124
Minimum service level & above percentage 4 37 100 100
Solid waste removal (below minimum level)
Removed less frequently than one week 0 0 0 0
Using communal refuse dump site 42624 27674 27674 27674
Other rubbish disposal 15301 10251 10251 10251
No rubbish disposal 0 0 0 0
Below minimum service level subtotal 57925 37925 0 0
Below minimum service level percentage 96 63 0 0
Total number of households 60124 60124 60124 60124
Description
Year -3 Year -2 Year -1 Year 0
Actual no. Actual no Actual no Actual no
Total households 60124 60124 60124 60124
Households below minimum service level 57925 37925 0 0
Proportion of households below minimum service level 96% 63% 0% 0%
Employees: Solid Waste Disposal and other Services
Job Level
Year -1 Year 0 Employees Posts Employees Vacancies
(fulltime equivalents)
Vacancies (as a % of total
posts)
No. No. No. No. %
0 – 3 29 72 65 7 10% 4 – 6 10 20 19 1 5% 7 – 9 5 20 20 0 0%
10 – 12 1 3 3 0 0% 13 – 15 1 1 1 0 0% 16 – 18 0% 19 – 20 1 1 1 0 0%
Total 47 117 109 8 15%
48 |Audited 2017/18 Annual Report
Employees: Waste Management and Other Services
Job Level
Year -1 Year 0 Employees Posts Employees Vacancies
(fulltime equivalents)
Vacancies (as a % of total
posts)
No. No. No. No. %
0 – 3 4 – 6 7 – 9
10 – 12 13 – 15 16 – 18 19 – 20
Total
Financial Performance Year 0: Solid Waste Management Services
R'000
Details
Year -1 Year 0
Actual Original Budget Adjustment Budget
Actual Variance to Budget
Waste Management Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
2015/16 2016/17 2017/18
Target Actual Target Actual Target
Service Indicators
*Previous Year
*Previous Year
*Current Year
*Current Year
*Current Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)
By providing waste management services in an environmental friendly and sustainable manner to all households of Mbhashe.
To provide effective and affordable services to the community where these are a direct function of the municipality by 2022
No of households receiving waste service
2199 2199 2199 2199 2199 60124 60124
No of landfill sites managed according to permit conditions
3 0 3 3 0 1 0
49 |Audited 2017/18 Annual Report
Total Operational Revenue
43,217.27 1,200,000.00 1,200,000.00
685,460.00 43%
Expenditure:
Employees 7,314,922.50 12,989,942.00 12,989,942.00
12,504,170.00 4%
Repairs and Maintenance
1,111,627.46 564,276.00 2,333,399.00
2,254,122.00 3%
Other 2,512,488.91 6,850,267.00 8,105,217.00
7,181,808.00 11%
Total Operational Expenditure
10,939,038.87 20,404,485.00 23,428,558.00
21,940,100.00 6%
Net Operational Expenditure
-10,895,821.60 -19,204,485.00 -22,228,558.00
-21,254,640.00 4%
Financial Performance Year 0: Waste Disposal and Other Services
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue
Expenditure:
Employees
Repairs and Maintenance
Other
Total Operational Expenditure -
-
-
-
Net Operational Expenditure -
-
-
-
Net expenditure to be consistent with summary T 5.1.2 in . Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual.
50 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: Waste Management Services
R' 000
Capital Projects
Year 0 Budget
Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All -
-
- 0%
-
- 0%
-
-
-
- 0%
-
-
-
- 0%
-
-
-
- 0%
-
-
-
- 0%
-
COMMENT ON WASTE MANAGEMENT SERVICE PERFORMANCE OVERALL:
A universal access with regard to waste management services has been achieved in the year under
review. All our landfill sites are licensed.
3.5 HOUSING
INTRODUCTION TO HOUSING
HOUSING SUMMARY
The largest percentage of households (96.5%) in Mbhashe LM presently resides in rural areas. A fairly
large percentage of the housing demand is therefore vested in the so-called rural areas. These areas
are typically characterised by tenure issues viz. private ownership versus communal ownership. It is
therefore critical to gain an understanding of the nature of the housing need in these areas including
tenure, infrastructure and services provision and dwelling types. If the housing programme is to reach a
large proportion of the population in the municipality, and probably those households with the lowest
incomes, it is important that there is specific rural analysis and rural housing strategy.
However; the creation of housing needs register or database is in progress. The database is an important
management tool for managing housing development and the eradication of backlogs.
The Mbhashe Municipality was previously granted developer status by the Department, but all project
implementation responsibilities were later taken over by the Department. The municipality is not
adequately capacitated to manage the housing delivery process. The municipality therefore continues
51 |Audited 2017/18 Annual Report
to rely on the Province to carry out a significant part of the responsibilities related to housing
development.
In the HSP 2007 the number of households in the municipality is estimated at 53 550 which represents
an increase from the 2001 census figures. This increase is almost 2% per annum, or 12.2% over the
whole period with 64 197 households projected for 2011 if this trend continues. It is estimated that there
are 819 households headed by children
There is a very high level of dependency in the municipality with almost 57% of the population under the
age of 20 and 12.1% over the age of 60.
From Census 2001 more than 92% of the households live in rural settlements and less than 5% of
households are situated in urban settlements with the majority of what remains living in informal
settlements.
The form of housing is to a large part determined by the very low income levels and the traditions of the
settlement pattern. Approximately 78% of households live in traditional dwellings with only approximately
14% living in formal dwellings. Whilst that is the case, the municipality has managed to facilitate provision
of houses to 130 households in 2017/18 financial year. The HSP mentions a reduction in the percentage
of informal houses from 2.32% in 2001 to 1.4% by 2006 and to 0.6% in 2007. Reference HSP 2011 -
2016
CHALLENGES
• There is a clearly cross-sectoral alignment issue that needs to be addressed.
• The present planning is badly inhibited by the lack of properly developed and maintained
database on the demand and the projects that are planned and or implemented to tackle this. Often the
information is sparse, or it is held in different formats in different locations both within the municipality
and outside of it. A more integrated system is required.
REMEDIAL ACTION
The meeting between the Department and the Municipality resolved to continue with the 7000 housing
project but scatter the 1000 across the other ward of Elliotdale
Percentage of households with access to basic housing
Year end
Total households (including in formal and
informal settlements)
Households in formal settlements
Percentage of HHs in formal settlements
Year -3 16 838 16 838 28%
Year -2 16 838 16 838 28%
Year -1 59 705 16 838 28%
Year 0 59 705 20 091 34%
T 3.5.2
52 |Audited 2017/18 Annual Report
Housing Service Policy Objectives taken from IDP
Service
Objectives
/ Service
Indicators
Service
targets
2016/17 2017/18 2018/19
Target Actual Target Actual Target
To facilitate provision of adequate housing to indigent families by 2022 (urban)
Facilitate
housing
provision
No. of
houses
built
- - - - 380
To facilitate provision of adequate housing to indigent families by 2022 (rural)
Facilitate
housing
provision
No. of
houses
built
480 323 130 130 130
To reduce the number of people living in squatter settlements
Building
formal
houses for
people
living in
squatters
No. of
shacks
removed
200 0 200 0 222
To facilitate provision of adequate housing to indigent households by 2025
Review
HSP
An
approved
- - - -
53 |Audited 2017/18 Annual Report
reviewed
HSP
EMPLOYEES: HOUSING SERVICES
Job level 2016/17 2017/18
No. of employees
No. of posts
No. of employees
No. of vacancies
Vacancies as a total of
vacant posts
0 – 3
4 – 6
7 – 9
10 – 12 1 1 1 0 0%
13 – 15 1 1 1 0 0%
16 – 18
Total 2 2 2 0 0%
Financial Performance Year 0: Housing Services
R'000
Details
Year -1 Year 0
Actual Original Budget Adjustment
Budget
Actual Variance
to Budget
Total
Operati
onal
Revenu
e
- -
- - 0%
Expendi
ture:
Employ
ees
2 550
462.67
54 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: Housing Services
R' 000
Capital Projects
Year 0
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All -
-
- 0%
-
-
-
-
Repairs
and
Mainten
ance
1 405
246.19
Other
6 365
610.25
Total
Operati
onal
Expendi
ture
10 321
319.11
Net
Operati
onal
Expendi
ture
-10 321
319.11
55 |Audited 2017/18 Annual Report
COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICES OVERALL
Whilst Housing is not the municipality’s function; the municipality facilitates and plans for housing
development. In the 2017/18 financial year; the municipality has managed to facilitate construction of
130 houses in Elliotdale.
Beside the provision of housing as outlined above, the municipality has facilitated the provision of
housing for the destitute and the provision of emergency housing for those affected by disaster. In the
2017/18 financial year, about 100 and 30 destitute houses (houses in different stages of construction)
are constructed in Dutywa and Xhora respectively.
However the main challenges remain the land claims, land invasion, poorly built houses in the Elliotdale
and Willowvale.
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT
INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT
Mbhashe Municipality’s intervention to adopt and implement the Free Basic Alternative Program goes
a long way to ensuring that a better life for all is a foreseeable reality and specifically to improve its
capacity towards service delivery to its citizens.
The municipality has provided the following services under its indigent support program:
1. Prepaid electricity tokens
2. Refuse removal
3. Solar alternative energy
4. Water and Sanitation – provided by Amathole District Municipality.
The Free Basic Services objectives are to provide indigent households with access to basic services.
This support is funded through equitable share received from National Treasury.
There has been assistance in non-electrified areas by providing them with free basic alternative
energy to help them meet some of their basic needs such as cooking. The intervention is aimed at
alleviating some of the difficulties associated with access to energy in these Households whilst the
Municipality works hand in hand with Eskom and Department of Energy towards ensuring that all
communities have access to electricity. In the current year 3531 households have been provided with
solar energy.
The municipality has also provided free refuse removal services to all communities of Mbhashe at no
cost. This intervention is aimed at promoting a clean environment.
The municipality is also providing monthly free electricity tokens of 50kws for indigent household
through Eskom Free Basic Account. In the current year 2864 households have been assisted.
The municipality has established a free basic services unit. The municipality has a draft indigent
register which is updated yearly where the housing needs register is utilised during the verification
stage.
These interventions have assisted the Municipality to address a whole suite of socio-economic issues
that arise from inadequate provision of free basic services to households and have assisted with job
creation to the community of Mbhashe Municipality.
The municipality is on track to fully comply with provisions of the equitable share allocation, which
dictates that the municipality must fully support indigent residents within its jurisdiction
57 |Audited 2017/18 Annual Report
Year 0- 57 925, Year 1- 20 000, Year 2 – 0 (Graph to be edited in line with the new information)
0
10000
20000
30000
40000
50000
60000
70000
2014/15 2015/16 Current Year 2016/17
Ho
use
ho
lds
('00
0)
Free Basic Household Services
Water (6 kilolitres per household permonth)
Sanitation (free minimum level service)
Electricity/other energy (50kwh perhousehold per month)
Refuse (removed at least once a week)
Data sourced from MBRR A10
58 |Audited 2017/18 Annual Report
Financial Performance Year 0: Cost to Municipality of Free Basic Services Delivered
Services Delivered
Year -1 Year 0
Actual Budget Adjustment Budget
Actual Variance to Budget
Water
Waste Water (Sanitation)
Electricity 1 533 080 7 766 074.00 5 353 031.00 72%
Waste Management (Solid Waste) 3 840 000 28%
Total 5 373 080.21 7 766 074.00 5 353 031.00 0%
Include figures for waste management
Free Basic Service Policy Objectives Taken From IDP
Service Objectives
Outline Service Targets
Year -1 Year 0 Year 1 Year 3
Target Actual Target Actual Target
Service Indicator
s
*Previous
Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
To ensure that all indigent households are identified and supported
Development of a credible indigent register
Credible Indigent Register
Developed credible Indigent Register
Updated indigent register
Develope
d credible
Indigent
Register
Developed
credible
Indigent
Register
Updated indigent register
Updated indigent register
Updated indigent register
Updated
indigent
register
Incentivize ratepayers through the indigent subsidy
Credible list of indigent households on our billing system
Aligned indigent register
Aligned indigent register
Aligned indigent register
N/A
N/A
Supply & delivery of free basic energy and services
Number of indigent households provided with free basic services 27 724 25 943 27 724 5 000 69 067
66 124
67 124
67 124
59 |Audited 2017/18 Annual Report
COMMENT ON FBS AND INDIGENT SUPPORT
The Municipality through Rural Waste Removal project has assisted over 60 124 rural households in
total during the 2017/18 financial year.
Furthermore, the municipality assisted the youth co-operatives who were appointed through the DOE
programme by funding the maintenance costs for the installed solar panels for 3 531 households.
The total of 2 864 households benefitted from 50kw free electricity tokens during the 2017- 18 financial
year.
COMPONENT B: ROAD TRANSPORT
INTRODUCTION TO ROAD TRANSPORT
The Municipality developed Infrastructure Master Plan, Reviewed ISD Policy, Road Maintenance Plan,
Infrastructure Maintenance Policy and appointed Professional Service Providers for efficient future
infrastructure planning. The Municipality implemented and monitored the roads maintenance plan with
the use of in-house construction teams. This is done to ensure that infrastructure assets are kept in
good condition. The Municipality continues to receive Municipal Infrastructure Grant and most of the
funds contributes on road construction. The Municipality introduced the project Upgrade of Govan Mbeki
access road in line with the strategy (Develop, maintain and upgrade quality infrastructure through
integrated planning), Design has been completed and expected to be implemented by 2018/19 to
2019/20
3.7 ROADS
INTRODUCTION TO ROADS
The provision and maintenance of roads cuts across the functional areas of the National Department of
Transport (NDoT), Department of Roads and Public Works Eastern Cape (DRPW), Amathole District
Municipality (ADM) and Mbhashe Local Municipality (MLM).
NDoT, DRPW and the District Municipalities established Roads Classification for all the LMAs funded
through the Rural Road Asset Management System (RRAMS) grant, commenced late in 2011. Under
this project DRPW appointed service provider Engineering Advice and Services (EAS) to revisit and
update the centreline data set, using aerial photography in order to include all possible access roads.
ADM formed part of RAMS program covering all its Local Municipalities where Mbhashe Municipality
also participated.
The DRPW has thus mapped and classified all un-proclaimed gravel roads, earth roads and tracks that
appear to serve a public purpose. This includes formal streets within urban and peri-urban areas as well
as tracks and roads within informal settlements, peri-urban and rural areas. These roads have all been
divided into links (intersection to intersection), assigned reference numbers and where available, road
names. All this data is stored on a consolidated GIS database.
60 |Audited 2017/18 Annual Report
The finalised road classification data for provincial and municipal road networks has now been made
available to the National Department of Transport, the Eastern Cape Department of Roads and Public
Works and all Local and District Municipalities by the provision of maps. The Department published a
full list of provincial roads in terms of Section 2 of the Eastern Cape Roads Act (Act 3 of 2003). Mbhashe
Municipality also received the final road classification data document as end of June 2015.
Rural Road Asset Management System (RRAMS) indicates that the total length of road network in the
entire Mbhashe Municipal area is 2696.37km. The total length for National Roads is 40.60 km, total
length for Provincial Roads is 776.53km of which 684.93km is unsurfaced, and the total length for
Municipal Access Roads is 2050km.
Kilometers
Total gravel roads New gravel roads
constructed
Gravel roads upgraded
to tar
Gravel roads
graded/maintained
Year -2 166 20 12 691
Year -1 166 25 14 691
Year 0 196 30 0 315
T 3.7.2
Gravel Road Infrastructure
Total tarred roads New tar roadsExisting tar roads
re-tarred
Existing tar roads
re-sheeted
Tar roads
maintained
Year -2 98 14 25 15 40
Year -1 114 20 30 25 40
Year 0 114 0 0 0 11
T 3.7.3
Tarred Road Infrastructure
Kilometers
New Gravel - Tar Maintained New Re-worked Maintained
Year -2 475 000.00 1 900 000.00 12 014 400.00 2 020 000.00 1 220 000.00 500 000.00
Year -1 490 000.00 1 900 000.00 20 164 045.00 2 300 000.00 1 300 000.00 500 000.00
Year 0 16 101 955.83 0.00 15 164 680.00 0.00 0.00 550 000.00
T 3.7.4
Cost of Construction/Maintenance
Gravel Tar
R' 000
61 |Audited 2017/18 Annual Report
Roads Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
2016/17
2017/18
2018/19
Target Actual Target
Actual
Service Indicators *Previous
Year *Current
Year *Current Year *Following
Year
(i) (ii) (v) (viii) (ix) (x)
To provide quality, safe trafficable Municipal roads as per applicable standards by 2017
Construct 220km km of new gravel roads
No. of kms of roads constructed
60 32
30 30 25
Maintenance of 769km of existing gravel road network
No. of kms of roads maintained
300 691 300 315.1 300
By paving internal streets sidewalks in all three towns
No. of m² paved with interlocking blocks 5
900m
10000 8361.5 10000
By upgrading stormwater channel in urban areas No.km upgraded 15 10 19 10
By doing skills audit and enhance operators with limited skills by providing accredited trainings
No. of accredited qualifications 15 15 25 25 25
0.00
5 000 000.00
10 000 000.00
15 000 000.00
20 000 000.00
25 000 000.00
Year -2 Year -1 Year 0
Ran
d V
alu
eRoad Infrastructure costs
Gravel New
Gravel - Tar
Gravel - Maintained
Tar - New
Tar Re-worked
Tar Maintained
62 |Audited 2017/18 Annual Report
Employees: Road and Storm Water Services
Job Level
Year -1 Year 0 Employees Posts Employees Vacancies
(fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 – 3 0 10 0 10 100%
4 – 6 25 32 25 7 21%
7 – 9 1 2 1 1 50%
10 – 12 08 17 16 1 6%
13 – 15 0 0 0 0 0%
16 – 18 2 2 2 0 0%
19 – 20 1 1 1 0 0%
Total 37 64 45 19 30%
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original
budget
Total Project
Value
Total All 16101956 16101956 10374529 -55%
Gwadana to Roma Access 1 262 942 1 262 942 630069 -100% 3499560
Sheshegu Access Road 216 083 216 083 202498 -7% 3074377
Colosa Mission Access 1 438 283 1 438 283 1084145 -33% 3169281
Magqosinini access road 1292759 1292759 1990910 35% 3917619
Sihlabeni access road 2902261 2902261 1616206 -80% 3471534
Nombulelo access road 1071549 1071549 878020 -22% 4415957
Ndesi Access road 426816 426816 1690506 75% 4052207
Pewula access road 1067600 1067600 314524 -239% 5039947
Talimofu access road 1259118 1259118 675886 -86% 7172356
Xhora Mouth to Ndalatha 3610493 3610493 147199 -2353% 9076136
Mbewuleni access road 1554052 1554052 1144567 -36% 3641853
T 3.7.9
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past
and future expenditure as appropriate.
63 |Audited 2017/18 Annual Report
COMMENTS ON PERFORMANCE OF ROADS OVERALL
The provision and maintenance of roads cuts across the functional areas of the Department of Roads
and Public Works, Mbhashe Local Municipality. Municipality managed to construct 30 km through MIG
and maintained 315.1km using in- house construction plant.
3.8. TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION
INTRODUCTION TO TRANSPORT
Mbhashe Local Municipal is currently providing the Learners Licence service and Drivers Licences, and
Registering Authority (RA) is currently not functional because of the delays of renovations in our
Premises, and relocation of Enatis equipment but as soon as renovations are done the equipment will
be moved and it will be fully functional.
MLM does not provide the bus service.
WASTE WATER (STORM WATER DRAINAGE)
INTRODUCTION TO STORM WATER DRAINAGE
The Municipality has problems with the storm water drainage in towns and throughout the Mbhashe
area. Municipality has committed budget for paving and to upgrade storm water drainage through the
usage of SMMEs. There is a challenge of bridges in the rural areas along the coast but there is limited
budget.
Financial Performance Year 0: Road Services
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to
Budget
Total Operational Revenue 2 052 000 18 144 000 18 144 000 18 144 000 0%
Expenditure:
Employees 15 238 887 15 302 781 15 302 781 15 238 887 0.4%
Repairs and Maintenance 24 107 475 15 164 680.00 15 164 680.00 15 164 680.00 0%
Construction 74 691 583 16101956 16101956 16101956 0%
Total Operational Expenditure 36 791 692 68 632 138 114 289 260 125 550 973 -10%
Net Operational Expenditure
-34 739 691.70 -50 488 138 -96 145 260 -107 406 973 -12%
64 |Audited 2017/18 Annual Report
Total Stormwater
measures
New stormwater
measures
Stormwater measures
upgraded
Stormwater measures
maintained
Year -2 191 120 0 166
Year -1 311 15 0 191
Year 0 361 50 50 95
T 3.9.2
Stormwater Infrastructure
Kilometers
New Upgraded Maintained
Year -2 205 000 0 1 250 000
Year -1 300 000 0 500 000
Year 0 300 000 0 250 000
T 3.9.3
Cost of Construction/Maintenance
Stormwater Measures
R' 000
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
Year -2 Year -1 Year 0
Stormwater infrastructure costs
New Upgraded Maintained
65 |Audited 2017/18 Annual Report
COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL
Mbhashe Local Municipality has three key projects for bridge construction that are still on implementation
stage and that will be completed on the 2018/19 financial year and procured storm water culverts for
inhouse construction teams, all storm water culverts were installed at all three units.
COMPONENT C: PLANNING AND DEVELOPMENT
INTRODUCTION TO PLANNING AND DEVELOPMENT
The municipality’s planning section deals with issues of land use management i.e. rezoning, sub-
divisions and consolidations. It also deals with spatial planning and land administration.
Challenges with regard planning include the following:-
• Non-compliance with land uses and building controls regulations.
• Land Invasions and land claims
• Continuous mushrooming of informal settlements
Illegal development occurring in environmental sensitive areas
Non adherence to lease agreements.
Delays in property transfers
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original
budget
Total Project
Value
Total All 12595951 12595951 6415151 -96%
Vinindwa 2000000 2000000 298096 -571% 2000000
Qinnqana 9303192 9303192 4917055 -89% 9303192
Mangqosinini 1292759 1292759 1200000 -8% 1292759
T 3.9.8
Capital Expenditure Year 0: Stormwater Services
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past
and future expenditure as appropriate.
66 |Audited 2017/18 Annual Report
However; the town planning unit has put in place mechanisms to deal with non-compliance. This
project will help minimizing the illegal use zones as per individual erven.
To remedy the situation; the municipality identified the following objectives:-
• Developed and implemented land use management system - to control development in priority
areas – in line with detailed spatial plans.
• Incorporate Environmental Design principles and criteria as guidelines for Spatial Planning &
Land Use Management
• Co-opt relevant role-players and facilitate agreement in support of the land use management
system.
The current SDF and LSDF`s forward 19 and 22 will help control and manage land use management.
LSDF for ward 8, ward 32 and ward 27 have already been developed
The municipality also conducted land audit. The project was done so that the municipality can effectively
undertake municipal functions needed to have a spatial register of all properties that lie within the
municipal area of jurisdiction.
The spatial register needs to contain, amongst others, the description, location, extent and ownership
details of each and every property within the municipality. The need for a spatial register can be met by
the conducting of a land audit for the municipality and the creation of cadastral datasets in a Geographic
Information System (GIS) format.
Cadastral information comprises both spatial and non-spatial components. The spatial information
component contains the positions of property boundaries and the non-spatial attribute information holds
all other information relating to the property including the legal property description. A GIS is the best
data repository to hold cadastral information as it allows for the storage of both the spatial and non-
spatial attribute components of cadastral.
The objective of the land audit was then to correct and update the Surveyor General Office (SGO)
approved cadastral dataset and to link the cadastral information to the Deeds Office ownership dataset
to create a spatial property register of all properties within the local municipality. Secondly, making sure
that all properties are recorded on the valuation roll, this can be made by continuously updating the
valuation roll through supplementary valuation rolls.
67 |Audited 2017/18 Annual Report
The General Property valuation for the year 2012 to 2017 was completed and approved by council in
2014. This was followed by the Supplementary Valuations of which the SV 1 was done and approved in
2015, SV 2 in 2016, SV 3 in 2017, SV 4 and SV 5 in the year 2018.
Properties belonging to Department of Public Works that are located in rural spaces are included in SV
4 roll that was conducted in the 2017/18 year.
The number of properties per category is listed below:
OTHER LAND CATEGORIES IDENTIFIED IN THE LAND AUDIT
Non-conforming (Government and Municipal): 35
(The council has approved the rezoning of the 35 properties from undetermined to institutional).
Non-conforming (privately owned): 126
(The project of rectification of the 126 properties is currently being done by the appointed service provider and was submitted in the Municipal Tribunal, however there are still challenges in the signing of Power of Attorney by some of the property owners.
Surveyed but no title deeds (RDP houses): 754
(99 of the title deeds have been done; and about 120 applications have been lodged to the deeds office. The challenge was the amount owed to the ADM making ADM unable to issue clearance certificates.
Surveyed but no title deeds (privately owned):
(Letters of demand have been sent to property owners and there’s improvement in this regard as many have responded positively.
Surveyed but no title deeds (government and municipal): 25
(The municipality has appointed a service provider for the surveying and registration of these properties.
The municipality is currently busy with the surveying of all land that has not been surveyed and has
managed to do the survey on 35 erven in the 2017/18 financial year. The objective is to allocate the erf
number to all municipal owned land and to regulate illegal demarcation of municipal commonage.
These are all done so that all properties in the municipality appear in the spatial register (valuation roll)
and linked to billing system.
Developed Policies and By-laws related to land use included the Invasion policy and land disposal policy.
Also dealt with is the issue of land claims. The Mputhi and Mangati Communities lodged a land claim
through the Land Claims Commission for the part of the Dutywa commonage described as Erf 1 –
Dutywa which now belongs to the Mbhashe Municipality. Land claims remain the main issue as some
of the development has been interdicted from continuing by the Mangati claimants. However there’s a
special committee dedicated in tackling and resolving the issue. This has resulted in the loss of revenue
68 |Audited 2017/18 Annual Report
as the service providers are charging the municipality for stand-off time whilst interdicted from continuing
with the work.
The biggest challenge is the land invasions in Willowvale and Elliotdale commonages. People illegally
demarcated sites from the municipal commonage for themselves. The municipality went to court and
obtained a court order to remove the illegal occupiers.
3.9 PLANNING
INTRODUCTION TO PLANNING
During the year under review, the municipality also undertook to prepare for the implementation of
Spatial Planning and Land Use Management Act (SPLUMA). The objectives of SPLUMA are:-
• Provide a uniform and coherent framework for spatial planning and land use management.
• Specify the relationship between the spatial planning and the land use management system.
• Provide for the inclusive, developmental, equitable and efficient spatial planning at different
spheres of government.
• Address the legacy of past spatial planning and regulatory imbalances.
• Promote greater efficiency, consistency and uniformity in the decision-making by authorities
responsible for land development decisions.
Whilst SPLUMA by-laws were adopted by council; there are still challenges related to its implementation.
Some of the challenges are:-
1. Resistance from the local chiefs who see themselves as custodians of land
3) MPT training for all members was done however appeal authority training is yet to be conducted.
With regard to SPLUMA preparedness, the following have been done:-
By-laws adopted by council
Municipal Planning Tribunal appointed by the council
Appeal Authority and the authorized official appointed by council
Applications for Land Use Development
Detail Formalisation of Townships
Rezoning Subdivision Survey Built Environment (Building Plans)
Year -2016/17
Year – 2017/18
Year – 2016/17
Year – 2017/18
Year – 2016/17
Year – 2017/18
Year – 2016/17
Year – 2017/1
8
Year – 2016/17
Year –
2017/18
69 |Audited 2017/18 Annual Report
Planning Policy Objectives taken from IDP
Service Objectives / Service Indicators
Service targets
2016/17 201617 2017/18
Target Actual Target Actual Target
Ensure municipal land is well planned and surveyed
Establishment of townships No. of townships established
3 3 1 1
Rezoning of land/erven No. of rezoned erven
N/A N/A N/A N/A
Surveying of sites No. of sites surveyed
10 0
To facilitate review of the Spatial Development Framework (SDF)
Review SDF An approved reviewed SDF
1 1 1 1 1
Develop LSDF An approved LSDF
3 3 2 0 0
Financial Performance Year 0: Planning Services
R'000
Details
Year -1 Year 0
Actual Original Budget Adjustment Budget
Actual Variance to Budget
Total Operational Revenue
730,607.00 852,903.00 902,903.00 19%
Expenditure:
Employees 95,457.00 196,635.00 196,635.00 51%
Repairs and Maintenance
- - -
Other 449,835.00 1,241,907.00 791,000.00 43%
Total Operational Expenditure
545,292.00 1,438,542.00 987,635.00 45%
Net Operational Expenditure
185,315.00 -585,639.00 -84,732.00 319%
Planning application received
none none 126 10 15 8 15 8 45 33
Determination made in year of receipt
Layout plans
approved by Council
None Approved by Council
Approved by council
Approved by Council
None - 26
Determination made in following year
N/a None N/A N/A N/A None - N/A
Applications withdrawn
0 None 0 1 under investigation
0 None - None 13 14
Applications outstanding at year end
0 none 0 1 under investigation
0 None - None 06 7
70 |Audited 2017/18 Annual Report
COMMENTS ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL
The municipality has improved its systems in the financial year under review with the planned
capacitation of the unit with the building control officer in addition to the three building inspectors taking
the work from the Amathole District Municipality. This will make the process of applications faster and
being able to deal with land invasions taking place in the three towns.
Rezoning applications linked to economic development is another important milestone which the
municipality has done thereby assisting business development to continue. This has led to two shopping
centres being built and an expansion of one shopping centre to accommodate the famous food chain –
KFC in the Elliotdale area. Another milestone is the appointment of the Municipal Planning Tribunal to
deal with land use applications in terms of the new legislation – SPLUMA. However, training to both the
Municipal Planning Tribunal and the Appeal Authority will be done in the financial year 2017/18.
LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACE)
INTRODUCTION TO ECONOMIC DEVELOPMENT
The municipal local economic development is driven and coordinated through the development and
implementation of an adopted LED Strategy (2015). The LED Strategy (2015) deals with economic
development themes that cut across all economic activities in Mbhashe Local Municipality. Whilst
administrative boundaries may be tightly drawn in terms of local municipalities that fall under the
Amathole DM, partnerships and trade across municipal boundaries are encouraged particularly in
support of the concept of Wall - to - Wall Municipalities as is contained in the South Africa Constitution.
The Mbhashe LED Strategy (2015) is focused more on creating an enabling environment by developing
programmes and making available resources to support viable and bankable projects and economic
opportunities that will in turn be identified by local businesses, entrepreneurs and residents at large
. The Mbhashe LED Strategy (2015) is necessary to reflect the envisaged changed economic conditions
and the development priorities with effective LED implementation partnerships. Mbhashe Local
Municipality therefore is in some competitive position.
Chapter 3 of the Mbhashe LM’s Integrated Development Plan (2017/2018) refers to three (3) areas of
investment opportunities which is the agriculture development, the enterprise development and the
tourism development. These are based on the current economic situation Mbhashe LM finds itself in and
is aimed at building on the existing strengths and exploiting the unique opportunities presented by the
local economy and the specific physical and demographic environment of the municipality.
While issues such as the development and upgrading of economic infrastructure, improved institutional
capacitation and good governance do have a role to play in ensuring that effective economic
development does takes place, these matters are considered to be supportive elements that will not, of
their own, result in the development of the economic base and have, therefore, not been included in the
three main economic areas of focus.
The key Strategic Thrusts as per the Mbhashe LM IDP (2017/18), which form the basis of this strategy
are:-
71 |Audited 2017/18 Annual Report
■ Strategic Thrust 1: Agriculture Development.
■ Strategic Thrust 2: Enterprise Development.
■ Strategic Thrust 3: Tourism Development.
The municipality has implemented various programmes to advance economic development especially
in the Agriculture, Enterprise and Tourism economic sectors as LED strategy implementation
mechanism.
Agriculture Development:
Performance Overview on Key Strategy Drivers:
• Agriculture profiling: Ten ward agriculture profiles (the following wards: Ward 2, Ward 7, Ward 8,
Ward 14, Ward 22, Ward 23, Ward 24, Ward 19, Ward 20, Ward 26) were developed and submitted
commodity products were made available as assistance to farmers in the form of agricultural inputs
(maize seeds, stock remedy, fencing and livestock infrastructure improvement support programme
(renovation of shearing sheds and dipping tanks).• Maize production as part of supporting crop farmers
for crop improvement; maize seed was delivered to (forty) 40 farmers which is equivalent to 2004 hectors
of planted maize land.
• Fencing : Fencing has been distributed to 6 villages of Mbhashe Local Municipality during 2017/2018.
• Farmer information days: 19 Capacity building programmes as part of farmer support and assistance
was rolled out benefiting local farming associations.
• Agriculture related projects / infrastructure: LED infrastructure initiatives projects were identified and
were implemented towards sustainable job opportunities and the reduction of poverty. Two dipping tanks
at Hobeni and Makhamiso at Ward 20 were renovated courtesy of a partnership between the municipality
and farmers. One shearing shed at Sundwana was renovated and the one at Dutywa Town was
renovated to accommodate SETA training programme.
• Livestock improvement programme: Mbhashe Local Municipality was identified as one area within
Amathole District Municipality that was extremely affected by drought negatively impacting on livestock
farming and water dam levels running dry. Furthermore, stock remedy was also distributed to all 32
wards as farmer assistance.
• Another important milestone is the municipal concentration on High Value Products such as Paprika
and Sorghum, Macadamia, Moringa and Lemon Grass and Haw-Haw Tea. The municipality through its
support programmes supported the AmaJingqi Macadamia Farming (AMF), Ligwa Moringa Farming,
Bulungula Lemon Grass Essential Oil and Nondobo Paprika and Sorghum.
Focus is also put on borehole and irrigation programme whereby the municipality started with the
feasibility in the 2016/17 financial year and proceeded to irrigation piping and electricity connectivity in
the 2017/18 financial year.
72 |Audited 2017/18 Annual Report
Enterprise Development:
Performance Overview on Key Strategy Drivers
• Training and development programme: Community confectionery bakery co-operatives received
training support geared at product quality improvement, governance issues and financial management.
• SMMEs assistance and Co-operative support: LED core strategic thrust is to support sustainable
enterprises and to such an extent, the SMME support programme assisted and supported 5 SMMEs. 40
Co-operatives were given assistance in the form of basic financial management training course.
Mbhashe cooperatives participated in the annual International Cooperative Day Celebrations (ICD) held
at Bloemfontein. Six (6) Primary Solar Cooperatives received technical (5) five days ENEL
PHOTOVOLTAIC SKILLS TRAINING in East London Industrial Development Zone (IDZ). Chizele
Primary Solar Cooperative member (Vuyo Ndzonda) was supported to attend an Alternative Conference
in Germany during April 2018.
• Informal trader support: LED has been continuously giving support to the informal economy in the form
of financial and non-financial assistance to hawkers. Fourty eighty (48) hawkers received training on
Informal and Micro Enterprises Development Programme (IMEDP) 125 hawkers received tools of trade
in the form of tables, chairs and cooler box bags that were distributed to Willowvale hawkers.
Furthermore, 45 hawker stalls at Dutywa Central Business District have been distributed to registered
street traders with trading permits.
Tourism Development:
Performance Overview on Key Strategy Drivers
• Product owner training assistance: Capacity building to crafters was undertaken to ensure that they
participate in the mainstream economy through workshops on tendering and other aspects of financial
management. Furthermore, crafters were assisted with machinery and equipment in the form of sewing
materials.
• Internal and external mega events: In order to maximise and increase visitors within Mbhashe as a
preferred destination of choice, hence, Mbhashe Local Municipality provided support to local events
which are intended to increase visitors, increase spending and revenue, ensuring geographical spread
of tourism spin-offs and cutting seasonal tourism issues. The internal events that were held in the
financial year 2017/18 were boxing tournament, Tenza Beach Festival and the famous Mbhashe
Indigenous Horse Racing event.
The external events that were participated through national tradeshows in the financial year 2017/18
were Grahamstown National Arts Festival at Grahamstown, IsiNgqiSethu Cultural Festival at Port St
Johns, Tourism Indaba at Durban, Macufe National Festival at Bloemfontein whereby local crafters and
tourism product owners became beneficiaries through market access and exhibiting their products and
offerings.
• Heritage tourism: LED has been providing hand on approach by ensuring preservation of heritage
resources at Mbhashe Municipality which are then made available as tourist products for consumption
and research. Furthermore, 6 heritage properties have been maintained following heritage prescripts
73 |Audited 2017/18 Annual Report
and legislation thus ensuring its original appeal and universal value is sustainable preserved. These
include the ones linked to liberation heritage i.e. Mazizi Maqhekeza, Fort Malan Memorial where the
designs we completed.
The municipality has implemented many programmes to advance economic development especially in
the Agriculture and Tourism sectors.
Economic Activity by Sector
R '000
Sector Year -2 Year -1 Year 0
Agric, forestry and fishing 3.7%
Mining and quarrying 0.3%
Manufacturing 4.3%
Wholesale and retail trade 15.4%
Finance, property, etc. 13.9%
Govt, community and social services 51.6%
Infrastructure services 3.3%
Total
Economic Employment by Sector Jobs
Sector Year 1 Year -1 Year 0
Agric, forestry and fishing 31% 31% 31%
Mining and quarrying % 2% 2%
Manufacturing 13% 13% 13%
Wholesale and retail trade 47% 47% 47%
Finance, property, etc. 6% 6% 6%
Govt, community and social services 11% 11% 11%
Infrastructure services 12% 12% 12%
Total 122 122 122
74 |Audited 2017/18 Annual Report
COMMENT ON LOCAL JOB OPPORTUNITIES
The municipality has had a variety of programmes leading to job creation programmes. These included
the Community Works Programmes and Expanded Public Works Programme. Apart from the two above,
the municipality’s strategic objective is to create self-employment through its LED programmes and
business retention and attraction strategies. As a result of the two aforesaid programmes, the
municipality has managed to create 725 job opportunities.
The Expanded Public Works Programme:
Job creation and skills development remain key priorities of the South African Government. The
Expanded Public Works Programme (EPWP) is a Cabinet endorsed Programme aimed at creating 6
million work opportunities by 2019. The Programme is implemented by all spheres of government, across
four (4) defined sectors, namely the Infrastructure, Social, Non-State and Environment and Culture
sectors. The Programme’s overall coordinator is the National Department of Public Works (DPW).
The Programme is implemented in the context of strategic Government initiatives which includes the
New Growth Path (NGP). The NGP outlines key job drivers, such as targeting more labour-absorbing
activities across the main economic sectors; and substantial public investment in infrastructure both to
create employment directly, in construction, operation and maintenance as well as the production of
inputs, and indirectly by improving efficiency across the economy.
The following projects were identified in the 2017/2018 business plan of Mbhashe Local Municipality-
Traffic temps
EPWP Supervisors (Office based)
Rural Waste
Heritage sites
Street cleaning
The Community Works Programme:
The CWP aims to provide an employment safety net, by providing a minimum level of regular work
opportunities to participants, with a predictable number of days of work provided per month. This
supplements the existing livelihood strategies of participants and provides a basic level of income
security through work. It is targeted at unemployed and/or underemployed people of working age,
including those whose livelihood activities are insufficient to lift them out of poverty. The Community
Work Programme provides access to a minimum level of regular work - 2 days a week = 100 days a
year at a wage rate of R50.00 per day. It is an area-based programme, intended to be ongoing; this
allows it to target the poorest areas: where market-based jobs are unlikely to come any time soon. Site
management is handled by implementing agencies appointed by the programme. The CWP uses
community participation to identify ‘useful work’ and priorities. ‘Work’ is decided in Ward Committees or
local development fora; it is multi-sectoral and contributes to public/community goods and services;
75 |Audited 2017/18 Annual Report
Start-up scale: 1,000 participants per site. CWP sites have a 65% labour intensity. In practice, a common
menu of typical priorities has emerged and these have become the ‘anchor’ programmes:
A strong focus on food security,
Home-based care, mainly for HIV and TB affected households and auxiliary care: cooking, cleaning;
Care of orphans and vulnerable children, child-headed households;
Social programmes to tackle alcohol abuse, violence, crime,
Development of recreation spaces, sporting facilities targeting youth
Environmental rehabilitation and maintenance Informal settlement upgrading.
Zibambele-type road maintenance.
In most cases, these are issues government is already trying to address, and a link to existing
departments/spheres of government and/or EPWP programmes is required.
This has implications for how the CWP is institutionalised and funded
The Ama-Jingqi - Macadamia Project:
As of end June 2018, Ama-Jingqi Macadamia Farm had a staff compliment of 115, consisting 58% males
and the remaining 42% female employees. They can further be analysed as per their ages, as illustrated
in the table below:
Age Category Number of Employees Percentage
18-35 38 53%
36-45 18 25%
46-55 13 18%
56-65 3 4%
Source: Ama-Jingqi Macadamia Farm Report 2017/2018
The Ligwa Moringa Project:
As of end June 2018, Ligwa Moringa Farm had a staff compliment of 6 consisting 4 males and the
remaining 2 female employees. Temporary jobs created during project implementation is equivalent to
165 jobs.
Source: Ligwa Moringa Report 2017/2018
76 |Audited 2017/18 Annual Report
Jobs Created during Year 0 by LED Initiatives (Excluding EPWP projects)
Total Jobs
created / Top 3
initiatives
Jobs created Jobs
lost/displaced
by other
initiatives
Net total
jobs created
in year
Method of validating jobs
created/lost
No. No. No.
Total (all
initiatives)
Year -2
Year -1 72 0 72
Year 0 105 0 105 Staff monthly payment slips
Initiative A (Year
0) 65 0 65
Initiative B (Year
0) 0 0 0
Initiative C (Year
0) 0 0 0
77 |Audited 2017/18 Annual Report
JOB CREATION THROUGH EPWP PROJECTS
Details EPWP Projects Number of jobs created through EPWP projects
2017/2018 LED Infrastructure Projects 105
Land Rehabilitation programme 132
Recycling 10
Plant Operators 08
Rural Waste Programme 124
Willowvale Squatter Camp 09
Waste Pickers 75
Pound Assistants 14
Street Cleaning 155
Administrative Assistants 06
Libraries 09
Electrical Assistants 4
Waste Transporters 13
Off- loaders 26
Land fill sites 4
EPWP Coordination 07
Infrastructure – MIG 17
TOTAL 695
78 |Audited 2017/18 Annual Report
EMPLOYEES: Local Economic Development Services
Job level 2016/17 2017/18
No. of employees
No. of posts No. of employees
Vacancies Vacancies (as a % of total posts)
0 – 3
4 – 6
7 – 9 1 0 0 0
10 – 12 3 4 2 2 50%
13 – 15 1 1 1 0 0%
16 – 18
19 – 20 1 1 1 0 0%
Total 6 6 4 2 50%
Local Economic Policy objectives taken from IDP 2017/2018
Service
objectives
KPI 2014/15 2015/16 2016/17 2017/18
Target Actual Target
Actual
Target
Actual Target Actual
Agricultural development and food security
By promoting agrarian reform and increase food security to farming households
Number of wards with agricultural profiles conducted
N/A N/A N/A N/A N/A N/A 10 10
Number of village associations assisted with maize production inputs.
40 40 40 40 40 40 40 41
Number of farming projects assisted with fencing inputs
13 13 13 13 6 6 6 6
79 |Audited 2017/18 Annual Report
Number of nurseries supported
Number of village farming associations assisted with stock remedy
31 31 31 31 31 31 32 32
Number of village feedlots assisted
N/A N/A N/A N/A N/A N/A 2 1
Number of dipping tanks renovated
5 5 5 5 5 5 5 2
Number of shearing sheds built or renovated
5 5 5 5 5 5 3 3
Number of boreholes renovated and drilled
N/A N/A N/A N/A 4 4 2 2
To ensure use of agricultural value chain to stimulate local economic development in
deprived areas
By providing support for farming value chain activities
Number of projects supported through value chain
N/A N/A N/A N/A 4 4 2 1
Number of projects supported
NA N/A N/A N/A N/A N/A 1 1
Number of High Value programs supported
1 1 1 1 1 1 1 1
Number of information days held
16 16 16 16 16 16 8 19
To reduce poverty and unemployment through viable and sustainable job creation
strategies
By facilitating multiplier effects from EPWP projects
Number of people employed
2000 2000
2000 695 2540 725 725 627
80 |Audited 2017/18 Annual Report
through EPWP
By developing an exit strategy (intervention plan) through SMME/Co-operative
Development of SMME support policy
NA N/A N/A N/A N/A N/A 1 1
To encourage investment through viable investment and retention strategies
By encouraging investment through viable investment and retention strategies
Economic Summit& Retention strategy
N/A N/A Economic summit and retention strategy
Concept
Approved concept and marketing plan
Approved concept document and marketing plan
4 investment opportunities profiled
6 investment opportunities profiled
By ensuring reduction of
employment rate
through development
and capacitation of
enterprises
Number of hawker stalls installed
N/A N/A N/A N/A 60 35 350 45
By promoting entrepreneurial access to markets
Number of SMME’s linked to formal markets
5 5 4 5 5 5 5 11
Number of co-ops funded, trained and assisted
5 5 5 5 5 5 5 5
LED AND SMME SPENDING
N/A NA N/A NA N/A NA 5% 5%
Spending towards local SMME's
N/A NA N/A NA N/A NA 20% 20%
By capacitating and assisting informal traders
Number of informal traders supported
4 5 4 6 120 120 50 173
Ensure community access to market through their skills and capacity development
No. of craft projects assisted
15 12 10 12 10 10 10 10
Unlocking marine and coastal tourism opportunities Ocean Economy Number of
ocean marine economic initiatives supported
N/A N/A N/A N/A N/A N/A 1 3
81 |Audited 2017/18 Annual Report
To position and promote Mbhashe as a tourist destination of choice
Tourism Events Number of
events hosted and participated on
8 8 4 4 4 4 4 8
Tourism and Environmental signage
Number of tourists destination with clear signage
3 3 3 2 1 1 5 3
Beach Upgrade Number of tourism infrastructure projects facilitated and supported
2 2 2 2 1 1 2 2
By supporting tourism operators
Number of tourism operators supported
5 5 5 5 5 5 3 3
Renovation of heritage sites
Number of heritage properties developed
5 5 5 5 5 5 5 5
Film Industry Support Number of programs supported
N/A N/A N/A N/A 1 1 1 1
Forest rehabilitation Number of plantations rehabilitated
N/A N/A N/A N/A 1 1 1 1
Financial Performance Year 0: Local Economic Development Services
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue - - - - -
Expenditure:
Employees 3 179 178 3 981 048 3 981 048 3 797 654 5%
Repairs and Maintenance - 400 000 421 619 421 618 0%
Other 13 252 614 20 170 027 19 608 864 16 814 197 14%
Total Operational Expenditure 16 431 792 24 551 075 24 011 531 21 033 469 12%
Net Operational Expenditure -16 431 792 -24 551 075 -24 011 531 -21 033 469 12%
82 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: LED
R' 000
Capital Projects
Year 0
Budget Adjustment
Budget
Actual Expenditure
Variance from original budget
Total Project Value
Total All 100 000
100 000 - 100% 100 000
Computers and Printers
100 000
100 000 - 100% 100 000
COMMENTS ON ECONOMIC DEVELOPMENT
Economic development performance is largely measured in terms of support to SMMEs, Co-operatives and support to High Value Crops. The limitation is still experienced in the accounting for the value of money to local SMMEs in terms of the Supply Chain Management. However, we have developed SMME Support and Funding Policy as tool that could be used to measure the value of support to SMMEs and local entrepreneurs compared to be approved budget. Budget has been spent towards local SMMEs in 217/18.
On other aspect; the municipality is tapping into is the Oceans Economy and coastal bankable opportunities such as Tenza development precinct, Dwesa-Cwebe Nature Reserve, Mncwasa, Qhora and Qatywa Eco Lodge.
COMPONENT D: COMMUNITY & SOCIAL SERVICES
INTRODUCTION
Mbhashe has a competence for amenities and community facilities like halls, pounds, cemeteries, sports
fields, ablution facilities, beaches, child care facilities, parks & public places and workers’ facilities. .
Halls: - The municipality has been constructing multi-purpose community halls in many of its wards to
aid communities with proper spaces for their meetings and functions. These facilities are constructed
through the use of MIG and once finished, they are owned, operated and maintained by the municipality.
The key challenge so far has been the lack of adequate funds to constantly maintain and offer security
services to our facilities. Another challenge is the role of the Mbhashe as against the community in the
management of these facilities. In all our units, there are halls (Town Hall, TRC halls and Multi-Purpose
Centres).
Sports fields: - As is the case with the halls, these facilities are scattered throughout the Municipality,
with some located in urban centres, whilst others are placed at ward centres. These facilities are poorly
managed with no personnel attached to them.
83 |Audited 2017/18 Annual Report
Cemeteries: - Cemeteries are a core competence of Mbhashe municipality and our role is largely to
plan and ensure provision of land for burial as well as support with such services as registrations and
mobilization of resources for fencing of facilities. Lack of funds is often cited as a reason why there is
poor maintenance of cemeteries across all Units. Cemeteries are currently categorized into urban and
rural (communal and private). Historically, the Municipality is largely responsible for the management
and operation of the urban cemeteries, whilst the rural communal cemeteries are the responsibility of
the communities concerned. Obviously, the private cemeteries in the homesteads become the
responsibility of the family concerned. Currently all the urban cemeteries are fenced in.
Workers’ facilities: - These are facilities that are meant for our staff like change-rooms, sitting places
as well as recreational spaces. The construction of these facilities is at an advanced stage and is
managed by Land & Housing section of the Development Planning Department.
Beaches: - Mbhashe is well endowed with a beautiful and wild coastline that covers certain parts of
Willowvale and Elliotdale. Certain parts of the coastline are used by the public for leisure, especially
during Easter and summer holidays. As a result of that, there are some leisure facilities in the form of
public toilets, showers, signage, braai areas and others that needs to be managed and maintained from
time to time. The Department of Environment (DEA) is doing well in terms of its Working for the Coast
(WftC) programme that includes cleaning of the coastal line, provision of necessary infrastructure and
development of the Coastal Management Plan for Mbhashe Local Municipality.
Child care facilities: - This is a fairly new field that has been introduced in the current financial year.
An amount of R1m was set aside for the provision of the Early Childhood Development Centers (ECDCs)
play facilities as well as doing assessment for the sixty (60) ECDCs.
3.11 LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES;
OTHER
This is the concurrent function of the National and Provincial governments. The Department of Sports,
Recreation, Arts and Culture (DSRAC) has since entered into a memorandum of agreement with local
municipalities, including Mbhashe to manage and administer these facilities. Despite the MOA, we
have numerous challenges of unfunded mandates, resulting in some libraries either being dilapidated
or closed altogether.
An amount of R350 000 was transferred by the DSRAC for the maintenance and management of
these facilities.
The Municipality has set herself, as part of the first three priorities the following and progress on each:-
• Renovation of eight (03) community halls – very little progress has been registered on this front due
to some of the delays in the appointment of the service provider to undertake the work.
• Maintenance and upkeep of the libraries – an amount of R300k was transferred by the DSRAC to
Mbhashe as part of the SLA. The Idutywa Library that was closed for almost a year due to the lack of
funding was re-opened again
84 |Audited 2017/18 Annual Report
• Establishment and maintenance of the Municipal Parks- some progress was registered on this front
in the form of a new park with children playing equipment is under construction that is due to be in the
first quarter of the new financial year.
Financial Performance Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; Other
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to
Budget
Total Operational Revenue 4 285 498 4 867 644 6 017 644 5 676 242 6%
Expenditure:
Employees 11 159 939 14 161 945 14 161 945 14 132 524 0%
Repairs and Maintenance 4 570 232 4 353 947 5 403 946 4 486 295 17%
Other 10 516 939 10 340 075 11 373 875 10 584 266 7%
Total Operational Expenditure 26 247 111 28 855 967 30 939 766 29 203 085 6%
Net Operational Expenditure -21 961 613 -23 988 323 -24 922 122 -23 526 843 6%
3.12 CEMETERIES & CREMATORIUMS
All three urban cemeteries were fenced funded through MIG program and the Data collection
for rural communal cemeteries was done. Done the routine maintenance in the form of grass
cutting and clearing of the overgrown vegetation in cemeteries.
Financial Performance Year 0: Cemetories and Crematoriums
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue - 3 264 3 264 3027 7%
Expenditure:
Employees -
Repairs and Maintenance 131 790
Other - 220 000 220 000 206 938 6%
Total Operational Expenditure 131 790 220 000 220 000 206 938 6%
Net Operational Expenditure -131 79 -216 736 -216 736 -203 911 6%
85 |Audited 2017/18 Annual Report
3.13 CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES
INTRODUCTION
This is fairly new field that has been introduced on the current financial year. An amount of R1M was
set aside for the provision of the Early Childhood Development Centers (ECDCs) play facilities as
well as doing assessment for the sixty (60) ECDCs, were provided with play tools. All the above were
achieved in the financial year under review.
COMPONENT E: ENVIRONMENTAL PROTECTION
INTRODUCTION TO ENVIRONMENTAL PROTECTION
In order to enforce the framework of Section 24 of the Constitution is the National Environmental
Management Act (Act 107 of 1998), which stipulates that everyone has the right:
to an environment that is not harmful to their health or well-being; and
to have the environment protected, for the benefit of present and future generations, through
reasonable legislative and other measures that
prevent pollution and ecological degradation;
promote conservation; and
secure ecologically sustainable development and use of natural resources while promoting
justifiable economic and social development.
Mbhashe LM, has an Environmental Management Unit established under Development Planning. The
purpose of this unit is to oversee that Environmental Protection is practised and Environmental
Compliance is adhered to. This assist in equipping the municipality in promoting sustainability in all its
practices. By doing so, in the year of 2016/2017, the unit has by far conducted the following programmes:
Climate Change Strategy and Resilience Plan
Land Rehabilitation
Removal of Alien Species
Tree Planting
Nursery Plan and Action Plan
Wetlands Report
Environmental Awareness Programs.
The programs that are supported externally are as follows:
Working for the Coast – Department of Environmental Affairs
River Clean-up – Department of Water & Sanitation.
Climate Change Strategy & Resilience Plan
A brief synopsis of anticipated climate change impacts can be drawn from the specialist report developed
to inform the SDF review process for the Mbhashe Local Municipality. Specialist climate change tools,
literature and data was also reviewed, and based primarily on the Long Term Adaptation Scenarios
86 |Audited 2017/18 Annual Report
(specifically for the Mbhashe Local Municipality), the following climate change impacts, with high
confidence, can be said to be inevitable:
I. An approximate increase in median temperate of 1.8 - 2 Degrees Celsius during the summer months
and approximately 1.6 – 1.8 Degrees Celsius increase during winter
II. An increase in winter monthly rainfall by 10 - 15 mm and 25 - 50 mm in the summer
III. The above climate changes could imply that Mbhashe Local Municipality is faced with the following:-
More frequent and severe flooding as a result of higher intensity storm events and possibly
more frequent hail events. This will and will impact on human settlements, infrastructure, human
health and place a greater burden on particularly impoverished communities
Higher rainfall may increase agricultural production but water availability could become a
limiting factor, requiring increased irrigation. Ground and surface water systems are vulnerable.
In this regard small scale farming is likely to be most affected
Heat waves may result in increased heat stress to plants, animals and humans and will increase
associated fire risk placing livestock and grazing capacity under threat.
Furthermore, the Northern Parts of Mbhashe are more prone to drought, as evidenced by the recent
events and the severe 2015 drought.
Land Rehabilitation
Land Rehabilitation is undertaken in two forms: firstly, through the EPWP job creation mainly focusing
in the rural areas of Mbhashe Local Municipality. The wards have been worked on over a period of two
years. This project is undertaken in five wards of MLM and has 20 to 40 participants in each ward.
The programme saw the employment of (125) people through the EPWP programme to rehabilitate the
damaged and eroded lands.
Secondly, Land Rehabilitation Plan has been completed for both Idutywa & Elliotdale towns, which suffer
from the illegal sites being mined for sabunga and other soil materials. Land degradation is a global
phenomenon, which is leading to the reduction and loss of the biological and economic productivity
capacity of land. The Mbhashe Local Municipality is one of those rural municipalities that face a
delinquent crisis of eroded land due to a number of causes. Some causes are those of human activities
exacerbated by natural processes and magnified by climate change and biodiversity loss.
Removal of Alien Species
Mbhashe LM is one of the municipalities that is faced by invasive alien plants mainly the lantana camara,
peanut butter plant, black wattle and the common gum tree. These species are tackled through the
EPWP and is also focusing in the rural wards of Mbhashe LM. The project is undertaken four wards of
Mbhashe, with the job creation of (80) participants. In towns, (Willowvale) the eradication takes place in
phases, so far only phase one has been completed in an area of about 2640 hectares.
Tree Planting
Tree Planting Programme constitutes greening in schools and in communities by providing and planting
trees. The community residents together with the school learners have to been educated on the
importance of trees
87 |Audited 2017/18 Annual Report
The importance of planting trees is known to be broad. It starts from playing a vital role in the battle
against climate change, feeding our rivers and help regulate the impact of storms and floods. Trees also
provide much needed oxygen and sequester carbon dioxide and also increase biodiversity interest.
In schools, trees provide a healthy and beautiful playground as they provide for shade for learners. Trees
are also able to improve an area water quality, hence the need for planting more trees around the area
of Mbhashe suffering from Climate Change Impacts.
The tree planting programme was taken to many villages targeting government and public properties
such as schools, clinics and halls as the first target. The programme was taken to (13) villages in the
2016/17 financial year.
Nursery Action Plan:
A nursery Action Plan was developed by the unit for an identified site in Elliotdale. The Nursery is aimed
at growing tree & flower seedlings in order to produce greening for the areas of Mbhashe LM. A tree
nursery is a managed site, designed to produce tree seedlings grown under favourable conditions until
they are ready for planting. It can be an informal, small-scale arrangement or a large commercial
enterprise. Nurseries vary in size, facilities (supplies, tools, equipment, etc), types of seedlings produced,
and operations. They also differ significantly in quality and quantity of planting stocks produced.
However, all nurseries primarily aim to produce sufficient quantities of high quality seedlings to satisfy
the needs of seedling users. Users include the nursery operator themselves, individuals, community
organizations, farmer groups, government agencies, non-government organizations, corporate or
private customers.
Wetlands Report
A wetlands study report has been undertaken by ICLEI, for and under the Amathole District Municipality,
in which Mbhashe forms part.
TABLE 1 THE CONDITION OF WETLANDS WITHIN MBHASHE LOCAL MUNICIPALITY:
Local Municipality Conditions Area (ha) % wetlands areas
Mbhashe Natural/Good condition
60.6 15.2
Moderately Modified condition
100.3 25.2
Heavily/Critically Modified condition
237.2 59.6
88 |Audited 2017/18 Annual Report
Distribution of Wetlands in Mbhashe Local Municipalities:
Environmental Awareness Programs
Environmental awareness have been undertaken extensively by the unit, in order to educate and
capacitate the communities of Mbhashe on environmental issues. Ranging from Arbour Day which was
undertaken in Qora (ward 2) together during the first week of September. Again in September, a Vulture
Awareness Day took place on ward (8), where Mbhashe show off with the beauty scenes of the pristine
environment where the native Cape Vulture is endemic to.
A Marine Day that took place in Cwebe Nature Reserve with the learners being educated on the
importance of marine life was conducted during the second quarter.
The scarcity of water in the area of Mbhashe was emphasised during the Water Week held in ward (05)
together with the Sanitation Week.
Lastly, the Environmental Day was celebrated in a form of an Eco-Schools competition, under the theme
of “The Importance of Environmental Management in Mbhashe LM”. Where five schools participated
and won prizes in monetary value which will assist the schools in implementing environmental projects
in their school grounds.
All these events took place with the support from various departments like, the National Department of
Environmental Affairs, Department of Education, Department of Agriculture, Forestry, and Fisheries, the
South African National Biodiversity Institute (SANBI), Department of Water & Sanitation, Department of
Economic Development, Environmental Affairs & Tourism and the Amathole District Municipality.
3.14 POLLUTION CONTROL
The types of pollution that are under the control of the unit ranges from river clean-up to coastal clean-
up. An Air Quality Management Plan is still to be developed for issues pertaining air pollution, currently
89 |Audited 2017/18 Annual Report
there is a climate change strategy that outlines the issues talking to air pollution e.g Transport pollution
& Car Emissions.
Mbhashe also have rural waste which is a form of controlling waste pollution around
A nuisance By-law is in place to tackle noise pollution.
3.15 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG.
COASTALPROTECTION)
INTRODUCTION TO BIO-DIVERSITY AND LANDSCAPE
There is overwhelming evidence that climate change will lead to a loss in Biodiversity. The predicted
changes in the natural environment for South Africa include a reduction in the ranges of species by up
to 80% as well as 30% of endemic species being increasingly vulnerable to extinction.
Projected changes to the Biomes within the Mbhashe Municipality.
The three Biomes in Mbhashe are Indian Ocean Coastal Belt, Grassland and Savanna (Mucina and
Rutherford, 2010). Due to increasing temperatures and changes in trends of precipitation resulting from
climate change, species richness may be reduced. In addition, the Grassland Biome is likely to be
reduced in spatial extent, while the spatial area of the Desert Biome is predicted to increase (UNEP,
2011). The decreased spatial extent of the Grassland Biome is also likely to be reduced due to the
invasion of trees and woody species. This would ultimately lead to a shift towards Savanna type
characteristics.
Possible responses to mitigate against the effects on the biodiversity and tourism sector:-
I. Awareness regarding the worth of utilising biodiversity to help in societal adaptation to the effects
of climate change, needs to be increased
II. The establishment and expansion of protected areas needs to happen, as well as the creation of
partnerships to allow for the effective management of areas which are not formally protected,
particularly those in the Grassland Biome.
DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL
PROTECTION)
INTRODUCTION TO BIO-DIVERSITY AND LANDSCAPE
There is overwhelming evidence that climate change will lead to a loss in Biodiversity. The predicted
changes in the natural environment for South Africa include a reduction in the ranges of species by up
to 80% as well as 30% of endemic species being increasingly vulnerable to extinction.
Projected changes to the Biomes within the Mbhashe Municipality.
The three Biomes in Mbhashe are Indian Ocean Coastal Belt, Grassland and Savanna (Mucina and
Rutherford, 2010). Due to increasing temperatures and changes in trends of precipitation resulting from
climate change, species richness may be reduced. In addition, the Grassland Biome is likely to be
reduced in spatial extent, while the spatial area of the Desert Biome is predicted to increase (UNEP,
2011). The decreased spatial extent of the Grassland Biome is also likely to be reduced due to the
90 |Audited 2017/18 Annual Report
invasion of trees and woody species. This would ultimately lead to a shift towards Savanna type
characteristics.
Possible responses to mitigate against the effects on the biodiversity and tourism sector:-
I. Awareness regarding the worth of utilising biodiversity to help in societal adaptation to the effects of
climate change, needs to be increased
II. The establishment and expansion of protected areas needs to happen, as well as the creation of
partnerships to allow for the effective management of areas which are not formally protected,
particularly those in the Grassland Biome.
Financial Performance Year 0: Environmental Management
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment
Budget
Actual Variance to Budget
Total Operational Revenue -
-
-
-
Expenditure:
Employees 284,762
416,254
416,254
416,250 0%
Repairs and Maintenance 109,688
380,000
281,077
234,577 17%
Other 517,142
1,852,200
1,852,200
1,429,846 23%
Total Operational Expenditure 911,592
2,648,454
2,549,531
2,080,672 18%
Net Operational Expenditure -911,592
-2,648,454
-2,549,531
-2,080,672 18%
COMPONENT F: HEALTH
This component includes: health inspections.
3.16 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION;
ETC.
INTRODUCTION TO HEALTH INSPECTIONS; FOOD AND ABATTOIR LICENCING AND
INSPECTIONS, ETC
Function is performed by the district.
COMPONENT G: SECURITY AND SAFETY
INTRODUCTION TO SECURITY AND SAFETY
Mbhashe LM is mainly responsible for the provision of the safety and security matters in the form of
traffic regulations and by-law enforcement. We have seen a lot of improvement in this field in the
form of establishing a fully-fledged unit dealing with the law enforcement, appointment of the head of
the law enforcement unit (Commander – Law Enforcement) and an additional ten (10) law
enforcement officers.
3.17 POLICE
INTRODUCTION TO POLICE
The Law Enforcement section is now fully functional and has been properly structured and more
personnel was appointed in critical posts. Some of the highlights include the appointment of two senior
traffic officers’ superintendent licensing and two (2) law enforcement officers. Our Law enforcement
officers deal with the enforcement of By-laws and Traffic officers deal with the enforcement of road traffic
act and criminal procedure act.
MUNICIPAL POLICE SERVICE DATA
Municipal Police Service Data
Description Year -1 Year 0 Year 1
Actual no.
Estimate No.
Actual no
Estimate No.
1. Number of the road traffic accidents during the year 742 750 851 900
2. Number of by-law infringements attended 5 10 5 10
3. Number of police officers in the field on an average day 10 10 6 10
4. Number of police officers on duty on an average day 15 20 14 20
T 3.20.2
92 |Audited 2017/18 Annual Report
Municipal Police Service Data
Description Year -1 Year 0 Year 1
Actual no.
Estimate No.
Actual no
Estimate No.
1. Number of the road traffic accidents during the year 742 750 851 900
2. Number of by-law infringements attended 5 10 5 10
3. Number of police officers in the field on an average day 10 10 6 10
4. Number of police officers on duty on an average day 15 20 14 20
T 3.20.2
Police Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
Year -1 Year 0 Year 1
Year 3
Target Actual
Target Actual Target
Service Indicators
*Previo
us Year
*Previous
Year
*Current
Year
*Current
Year
*Current
Year
*Following
Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
Ensure the enforcement of by laws and regulations wihin the Municipal area
No of traffic and wardens appointed
3 0 3 0 0 5 - 5
EMPLOYEES
Employees: Police Officers
Job Level Year -1 Year 0
Police Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
Administrators No. No. No. No. %
Chief Police Officer & Deputy
Other Police Officers
0 – 3
93 |Audited 2017/18 Annual Report
4 – 6
7 – 9 25 28 26 2 22%
10 – 12 4 5 5 0 20%
13 – 15 1 1 1 0
16 – 18
19 – 20
Total 30 33 32 2
3.18 OTHER (DISASTER MANAGEMENT, ANIMAL LICENSING AND CONTROL OF
PUBLIC NUISANCES3.19 OTHER (DISASTER MANAGEMENT, ANIMAL LICENSING
AND CONTROL OF PUBLIC NUISANCES
This Disaster Management is performed in accordance with the legislative requirements in the Disaster
Management Act. In terms of Section 46 the municipality co-ordinates its activities with those of the –
(a) National Disaster Management Centre;
(b) The Eastern Cape Provincial Disaster Management Centre; and
(c) Amathole District Municipality’s Disaster Management Centre
The Mbhashe Local Municipality adopted the Disaster Management Plan on the 28th of October 2015.
The plan stipulates that the municipality is responsible for executing some obligations with regards to
disaster in terms of the Disaster Management Act.
The Disaster Management Plan of the Local Municipality reflects:
I. Compliance with the provisions of the Disaster Management Act.
II. Alignment and integration with the current Integrated Development Plan (IDP).
III. Assessment of risk and vulnerability of its communities and anticipate and prioritise disasters
that are likely to occur in the municipality.
IV. Place emphasis on measures that reduce risk and vulnerability of disaster-prone areas,
communities and households.
V. Identify areas, communities and households that are vulnerable and at risk.
VI. Respect and use the indigenous knowledge relating to disaster management.
VII. Promote disaster management research.
VIII. Identify and address the weakness in capacity of the municipality to deal with possible disasters.
IX. Facilitate maximum emergency preparedness
The following risks are identified as priority risks at Mbhashe that will be addressed by risk reduction
and preparedness planning as contained in the plan.
In the year 2017/18, the municipality also reviewed the Disaster Policy. The policy states different
stakeholders involved in the disaster mitigation.
Mbhashe Local Municipality uses the services of the Amathole District Municipality in the fire services;
this is in terms of the assigned powers by the MEC for Local Government.
94 |Audited 2017/18 Annual Report
In the year 2017/18, the municipality was able to respond positively to all reported disasters in the
area. In all these disasters; the municipality was the first point of call and response rate was high as
officials and councilors were seen in the disaster struck areas within 24 hours. For most of the time;
groceries were supplied where to all those affected by fire and storm where groceries were affected.
COMPONENT H: SPORT AND RECREATION
3.20 SPORT AND RECREATION
The sport facilities are being maintained, we have also started to maintain even the ones at the rural
areas, we have started by supplying Nets and Poles for Netball and soccer, the ones in the urban
areas are also provided with security guards because of vandalism.
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES
INTRODUCTION TO CORPORATE POLICY OFFICES
3.21 EXECUTIVE AND COUNCIL
INTRODUCTION TO EXCECUTIVE AND COUNCIL
The municipality has the political stability which enables Council to oversight through its section 79 and
80 committees. The Mbhashe municipality has two management teams a political and an administrative
team. The political team made up of Councillors and headed by the Mayor. This team makes strategic
and policy decisions for the residence and businesses. The administrative team is headed by the
Municipal Manager assisted by the senior managers in ensuring that the decisions taken by the council
are implemented
The Executive and Council Policy Objectives Taken From IDP
Service Objectives
Outline Service Targets
Year -1 Year 0 Year 1 Year 3
Target Actual
Target Actual Target
Service Indicators
*P
revio
u
s Y
ear
*Pre
vio
us Y
ear
*Cu
rren
t
Yea
r
*Cu
rren
t
Yea
r
*Cu
rren
t
Yea
r
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
To ensure coordination , cooperation and joint planning g between spheres of government by 2017
Revive and strengthen IGR structures within the municipality
No of IGR meetings held
4 4 4 4 4 4 4 4
95 |Audited 2017/18 Annual Report
To ensure optimum functionality of council and its structures
Coordinate functioning of council oversight structures
No of council and its structures’ meeting organised 44 63 20 48 72 24 37 24
To enhance and promote communication in all municipal activities
Reviewal and implementation of communication strategy
Reviewed communication strategy 1 1 1
Adopted Reviewed communication strategy
Adopted Reviewed communication strategy - - -
To ensure that all stakeholders participate in the affairs of the municipality
Review and implement public participation and petition strategy
Reviewed public participation and petition strategy 1 1 1
Existin
g
public
particip
ation
and
petition
strateg
y
Existin
g
public
particip
ation
and
petition
strateg
y - 1 30
Improve the functioning and reporting of ward committees
No of reports submitted 34 5 34
124
Strengthen the relations between CDW’s , ward committees and ward councillors
No of meetings held 4 3 -
4
96 |Audited 2017/18 Annual Report
Regular communication on communities on the achievements of targets set out in IDP
No of community imbizo’s held 32 32 31
31
Financial Performance Year 0: The Executive and Council R'000
Details
Year -1 Year 0 Actual Original
Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 10 543 000.00
11 047 000.00
11 047 000.00
11 047 000.00 0%
Expenditure:
Employees 22 065 375.95
25 585 611.00
25 585 611.00
24 374 085.69 5%
Repairs and Maintenance 48 793.27
63 661.00
63 661.00
143 435.79 -125%
Other 3 641 285.59
4 419 857.00
4 419 857.00
5 447 526.03 -23%
Total Operational Expenditure 25 755 454.81
30 069 129.00
30 069 129.00
29 965 047.51 0%
Net Operational Expenditure -15 212 454.81
-19 022 129.00
-19 022 129.00
-18 918 047.51 1%
Financial Performance Year 0: The Executive and Council
R'000
Details
Year -1 Year 0 Actual Original
Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 10 543 000.00
11 047 000.00
11 047 000.00
11 047 000.00 0%
Expenditure:
Employees 22 065 375.95
25 585 611.00
25 585 611.00
24 374 085.69 5%
Repairs and Maintenance 48 793.27
63 661.00
63 661.00
143 435.79 -125%
Other 3 641 285.59
4 419 857.00
4 419 857.00
5 447 526.03 -23%
Total Operational Expenditure 25 755 454.81
30 069 129.00
30 069 129.00
29 965 047.51 0%
97 |Audited 2017/18 Annual Report
Net Operational Expenditure -15 212 454.81
-19 022 129.00
-19 022 129.00
-18 918 047.51 1%
COMMENT ON THE PERFORMANCE OF EXECUTIVE AND COUNCIL
Council Meetings The Municipal Structures Act requires that council should meet at least once a quarter. Mbhashe Municipality has in the previous year exceeded this required. All the issues that hinges on the legislative provisions were performed to the full expectations oversight structures. Attendance to Council Meetings Mbhashe Municipality boosts a very high record of attendance for all the council meetings convened for the year under review with most of the instances wherein councillors were unable to attend, apologies were tendered and approved. All Party Whippery Council has also provided for mechanisms for political entities to council to be able to find one another on an extended avenue made available through the office of the Chief Whip Section 80 Committees Section 80 committees are performing their functions very well. Their work assists council in dealing with the details in respect of the matters that are to be table before council for consideration, thus making the business of council less cumbersome. Section 79 Committees The Municipal Public Accounts Committee has been fully constituted and members were given the requisite training.
3.21 FINANCIAL SERVICES INTRODUCTION
The municipality’s financial services office is made up of the following units:
Budget and Reporting: Responsible for preparing the budget and reporting. This section has also
ensured that the municipality met all its reporting requirements as per the regulatory framework and has
over the past two years received an unqualified audit opinion from the Auditor General’s office.
Expenditure and Payroll Management: Responsible for monitoring payments made to service
providers, employees and councillors whilst ensuring that controls exist regarding the municipality’s
contract management and that all payments made by the municipality have followed the proper control
process.
Procurement: Responsible for monitoring controls over the Supply chain management process and
ensuring that controls exist to mitigate against any risks that might affect the supply chain processes.
The unit oversees procurement process from minor purchase order, mini tenders to open bid tenders
and reports on the system in place to Provincial and National Treasury as stipulated in the MFMA.
Assets Management: Responsible for monitoring and maintenance of all the municipal assets and
safekeeping of all assets. Performing physical verification of assets and ensuring that the municipality
maintains a GRAP compliant assets register.
98 |Audited 2017/18 Annual Report
Revenue: Responsible for revenue collection, the process of updating the valuation roll, billing services,
providing assistance to ratepayers regarding accounts queries.
Debt Recovery
R' 000
Details of the types of
account raised and recovered
Year -1 Year 0 Year 1
Actual for accounts billed in
year
Proportion
of accounts
value billed that
were collected
in the year %
Billed in Year
Actual for
accounts billed in
year
Proportion of accounts value billed that were
collected %
Estimated outturn for accounts billed in
year
Estimated Proportion
of accounts billed that
were collected %
Property Rates 6 782 109 81.86% 5 704 924 8 390 804 128% 5 700 000 100%
Electricity - B
Electricity - C
Water – B
Water – C
Sanitation
Refuse 685,460.00 18%
- 90 238 #DIV/0! 1 300 000 100%
Other
Employees: Financial Services
Job Level
Year -1 Year 0 Employees Posts Employees Vacancies
(fulltime equivalents)
Vacancies (as a % of total
posts)
No. No. No. No. %
0 – 3
4 – 6
7 – 9 21 11 11 0 18%
10 – 12 9 8 7 1 0%
13 – 15 1 1 1 0 0%
16 – 18 1 1 1 0 0%
19 – 20 1 1 1 0 0%
Total 35 22 21 1 9%
99 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: Financial Services
R' 000
Capital Projects
Year 0 Budget Adjustment
Budget Actual
Expenditure Variance
from original budget
Total Project Value
Total All 637 500 457 500 457 500 Computer Equipment 347 500 347 500 265 758 24% 347 500
Furniture and Office Equipment 240 000 110 000
- 100% 110 000
Machinery and Equipment 50 000 - - -
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.25.6
Financial Performance Year 0: Financial Services
R'000
Details
Year -1 Year 0
Actual Original Budget Adjustment Budget
Actual Variance to
Budget
Total Operational Revenue 226 197 514 346 397 693 345 897 693 253 354 956 27%
Expenditure:
Employees 9 661 882 %
Repairs and Maintenance - - - - %
Other 23 264 825 71 618 851 65 051 466 18 464 995 %
Total Operational Expenditure 32 926 707 71 618 851 65 051 466 18 464 995 %
Net Operational Expenditure 193 270 807 274 778 842 280 846 227 %
100 |Audited 2017/18 Annual Report
Financial Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
Year -1 Year 0 Year 1 Year 3
Target Actual Target Actual Target
Service Indicators
*Previous Year
*Previous Year
*Current
Year
*Current
Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
To increase revenue collection by 50% in June 2017
Implementation of credit control and debt collection policy
Amount collected on all outstanding debts
0.1
0.15 0.2
Ensure data integrity in the billing system
Ratio of billing versus collection
46% 80%
To establish a fully-fledged and effective supply chain management by 2016
Development and operationalization of SCM Plans
Development of Institutional Procurement plan 1
Developed Procurement Plan 15/16
Developed Procurement Plan 15/16
Developed Procurement Plan 16/17
Developed Procurement Plan 17/18
Developed Procurement Plan 18/19
Promotion and maintenance of SCM systems through compliance with laws and regulation
Amount in irregular expenditure to decrease 21M 10M
Each Head of Department to be responsible for their own contract management
Number of compliant contracts
To ensure sound financial management, compliance and regular reporting at all times
Implementing effective internal controls and monitoring compliance
Timely submission of compliance reports to Council, Treasury and Auditor General.
Section 71, 52, 72 and AFS
Compli
ance
of
reports
as per
MFMA
Calend
er
Compli
ance
of
reports
as per
MFMA
Calend
er
To ensure that municipal assets are adequately managed and monitored
Establishment of a fully-fledged asset management unit
GRAP compliant immovable
Asset Register not fully
Updat
ed
GRAP
Updat
ed
GRAP
101 |Audited 2017/18 Annual Report
and movable asset register
GRAP Compliant
Compli
ant
Asset
Regist
er
Compli
ant
Asset
Regist
er
To ensure that the budget is aligned to the IDP
Develop credible budget that is aligned to IDP
Timeous approval and submission to Treasury
Timeous approval and submission
Approved budget by 31 May 2016
Approved budget by 31 May 2016
To ensure that our budget is transparent and properly monitored
Abiding to the IDP & Budget process plan and effective publishing of our budget
Positive assessment by Treasury
Credible budget
Credible budget
Credible budget
3.22 HUMAN RESOURCE SERVICES INTRODUCTION TO HUMAN RESOURCE SERVICES
The Human Resources Management Services rendered by Mbhashe aim to achieve the following:
1. Establish and maintain a working environment that encourages personal growth, development
and job satisfaction
2. Attend to the Human Resources requirements of the various municipal departments
3. Ensure that Human Resources policies and procedures are administered to protect the
interest of both the municipality and its employees
4. Render recruitment and selection
5. Maintain and monitor conditions of services and
6. Administer personnel and staff movement
SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES
Human Resources service 63 Councillors and 12 Traditional Leaders in addition to a total number
of 274 permanent employees as at 30 June 2017.
Total number of vacant posts as at 30 June 2018 amounts to 99
Employees: Human Resource Services
Job Level
Year -1 Year 0
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
102 |Audited 2017/18 Annual Report
0-3 0 0 0 0 0%
4 – 6 0 0 0 0 0%
7 – 9 3 6 2 4 66%
10 – 12 3 5 3 2 40%
13 – 15 1 1 1 0 0%
16 – 18 0 0 0 0 0%
19 – 20 1 1 1 0 0%
Total 8 13 7 6 46%
Financial Performance Year 0: Human Resource Services
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to
Budget
Total Operational Revenue 178 286.08
100 000.00
100 000.00
47 874.41
Expenditure:
Employees 3 021 874.90
5 390 943.00
5 390 943.00
3 570 204.61
Repairs and Maintenance 5 473.76
6 135.00
6 135.00
7 242.42
Other 1 879 200.68
3 820 779.00
3 942 579.00
5 594 714.60
Total Operational Expenditure 4 906 549.34
9 217 857.00
9 339 657.00
9 172 161.63
Net Operational Expenditure -4 728 263.26
-9 117 857.00
-9 239 657.00
-9 124 287.22
Capital Expenditure Year 0: Human Resources
R' 000
Capital Projects
Year 0
Budget Adjustment
Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 800,000
800,000
582,676 27%
800,000
Computers and Printers 50,000
50,000
24,370 51%
50,000
Office Furniture & Equipment 50,000
50,000
1,320 97%
50,000
Vehicles 700,000
700,000
556,986 20%
70,000
103 |Audited 2017/18 Annual Report
Human Resource Services Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
Year -1 Year 0 Year 1 Year 3
Target Actual Target Actual Target
Service Indicators *Previous
Year *Previous
Year *Current Year *Current
Year *Current
Year *Following
Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Service Objective xxx
To provide and enhance skills among the Councilors, Ward Committees and Employees to ensure effective service delivery by 2022
AET programm
e for employees
Matric
programme for
Councillors
Nine employees enrolled for AET
Twenty three
councillors enrolled for Matric programme
Study assistance awarded to employees
28 employees received financial
assistant in pursuit of
tertiary studies
8 employees have graduated from tertiary
institutions 20 employees are in
continuation of studies
104 |Audited 2017/18 Annual Report
Unemployed
Community programm
e
49 unemployed graduates were enrolled in an
internship programme and
placed in different
municipal departments
49 unemployed graduates participated
in the programme
21 new appointed personnel Appointment letter
COMMENT ON THE PERFORMANCE OF HUMAN RESOURCES SERVICES OVERALL
According to 2017/18 Municipal IDP, one the projects identified was the Councillor and Employee Assistant Programme (CEAP), which the
municipality managed to appoint a service provider to manage the Wellness programme for all municipal councilors and staff for a period of
two years.
Because of delays in the Job evaluation processes, the municipality could not fill the vacancies as planned.
The municipality managed to increase the number of employees accessing municipal benefits substantively. The municipality submitted it
Workplace Skills Plan to the LGSETA by end of April 2018, EE Report and RoE report to the Department of Labour. A large number of
employees were trained both academically and skills development. All Senior Managers has the Treasury financial certificate. Some
councilors also benefited in skills development. The Local Labour Forum, the Training Committee and the Employment Equity Committee
are functional.
105 |Audited 2017/18 Annual Report
3.23 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
This component includes: Information and Communication Technology (ICT) services.
INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES INTRODUCTION TO INFORMATION
AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
Information Communication Technology section oversee the stability of business systems and network infrastructure within the
organization, which require constant performance monitoring. Set institution-wide standards for software configurations and
implementation guidelines in line with Policies and Procedure Manuals. Ensure maximized uptime, performance optimization,
and full utilization of ICT resources and implementation of security measures & electronic data operations. Co-ordinates
tasks/activities associated with the provision of End User support and analyses, diagnoses and resolves software/ hardware
related problems ensuring optimum and uninterrupted functionality of operating systems and applications across the Municipality.
Use system analysis techniques and procedures, including consulting with users, to determine hardware, software, or system
specifications. Managing LAN\WAN infrastructure and making sure it’s up and running.
ICT Service Policy Objectives Taken From IDP
Service Objectives Outline Service Targets
2014/15 2015/16 2017/18
Target Actual Target Actual Target
Service Indicators
*Previous
Year
*Previous
Year *Current
Year
*Current Year
*Current Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)
Ensure Effective And Efficient ICT By 2017
Review ICT policies Reviewed ICT policies
5 5 5 5
106 |Audited 2017/18 Annual Report
Review ICT governance framework
Reviewed ICT governance framework
1 1 1 1
New ICT Policies 5 5
Employees: ICT Services
JOB LEVEL
Year -1 Year 0
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0-3 0
4-6 0 0 0 0
7-9 0 3 0 3 100%
10-12 2 2 2 0 0%
13-15 0 0 0 0 0%
16-18 0 1 1 0 0%
19-20 0 0 0 0 0%
Total 2 6 3 3 50%
107 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: ICT Services
R' 000
Capital Projects
Year 0 Budget
Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 2 150 000
2 200 000
804 383
2 200 000
C0ABLES 300 000
300 000
183 415 39%
300 000
DISASTER RECOVERY 400 000
400 000
362 981 9%
400 000
VPN 300 000
400 000
- 100%
400 000
SOFTWARE 1 000 000
950 000
189 805 80%
950 000
SERVERS 150 000
150 000
68 182 55%
150 000
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.27.6
108 |Audited 2017/18 Annual Report
Capital Expenditure Year 0: ICT Services
R' 000
Capital Projects
Year 0 Budget
Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 2 150 000
2 200 000
804 383
2 200 000
CABLES 300 000
300 000
183 415 39%
300 000
DISASTER RECOVERY 400 000
400 000
362 981 9%
400 000
VPN 300 000
400 000
- 100%
400 000
SOFTWARE 1 000 000
950 000
189 805 80%
950 000
SERVERS 150 000
150 000
68 182 55%
150 000
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.27.6
COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL
Information Communication Technology section made sure that they manage the stability of business systems and network infrastructure
within the organization, which required constant performance monitoring. The municipality have Virtual Private Network and Internet
connection that gives access to municipal systems and network in all municipal offices, Voice over Internet Protocol Telephone system
across municipal offices to enhance communication internal and with outside stakeholders, municipal financial system is mSCOA compliant
as per National treasury requirements, New network cabling infrastructure for satellite offices, Upgraded municipal website with constant
maintenance, Developed Disaster recovery- Business Continuity Plan, IT Governance Framework and IT Policies and Procedure manuals,
Upgraded computers for users and providing End User support across Mbhashe LM users. ICT Steering Committee established to enhance
ICT performance. System trainings attended by ICT. 3 Vacant positions will enhance ICT services across all sites once they are filled.
109 |Audited 2017/18 Annual Report
ARCHIVES OR REGISTRY
In line with the National Archives and Records Services Act No 43 of 1996 and Promotion of Access to Information Act 2 of 2000, registry
protects, maintain municipal records. It also promotes access to information held at registry. It also serves as institutional memory where all
records such as Policies, IDP, Financial statements, Annual reports and other strategic documents are made available to the public and staff.
It serves to promote preservation of records of enduring value and disposal of ephemeral value. It also ensures timeously delivery of records
to relevant departments within the municipality as well as delivery to municipal stakeholders.
Employees: Archives Services
JOB LEVEL
Year -1 Year 0
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0-3 4
0 0
0 0%
4-6 0
0 0 0 0%
7-9 3
3 3 0 0%
110 |Audited 2017/18 Annual Report
10-12 1
1 1 0 0%
13-15
16-18
19-20
Total
8 4 4 0 0%
COMMENT ON THE PERFORMANCE OF ARCHIVES SERVICES OVERALL
Municipal Archives is responsible for centralization of municipal information. Three containers were bought and basement has been partitioned
particularly for Human Resources Registry. Archives Access Application forms are filled by different departments accessing municipal records
held in Archives. Archives Accession forms are filled by different departments transferring their records to municipal Archives. Standing
disposal authority has been granted to the municipality for disposal of ephemeral records which will provide space for active records.
Notifications to dispose ephemeral records are sent to the Provincial Archives as standing disposal authority has been granted to the
municipality. Records disposed were for Budget and Treasury (Supply Chain), Elliotdale’s old and with non-archival value records. Municipal
file plan has been approved by Provincial Archives and was implemented from 31 August 2016. Records Champions were trained to use of
municipal archives. Three workshops have been conducted for all records champions. Records Management Policy has been adopted by the
council and Procedures manual developed.
111 |Audited 2017/18 Annual Report
3.24. PROPERTY SERVICES ANDLEGAL SERVICES
PROPERTY
Property in this context refers to land and buildings (immovable properties). Owners of the immovable property in
the municipality are the following:-
1) Communal under traditional leadership
2) Privately owned properties
3) Government owned properties (DRDLR and Department of Public Works)
4) Municipal owned properties
The municipal valuation roll is used as database where all properties registered on the deeds office are kept. The
latest valuation was updated in 2014 and supplementary valuation rolls done in every year thereafter.
The municipality also leases land to enterprises with the purpose of uplifting and promoting private sector
investment. In the 2017/18 financial year, the municipality has improved in the internal controls with regard to
leases. The lease policy has been adopted by council; more lease agreements have been signed and the collection
rate on leases has improved.
INTRODUCTION ON PROPERTY, LEGAL, RISK MANAGEMENT AND PROCUREMENT SERVICE
LEGAL: Legal Services is any form of legal advice, provision of legal opinions, drafting legal documents,
representation of any person that requires the expertise of a person trained in the practise of law.
• Non litigious – legal opinions, drafting / vetting contracts and legislative services.
• Litigation – representation in arbitrations and court of law in civil, motion applications and
labour disputes.
112 |Audited 2017/18 Annual Report
The unit is responsible for legal services and compliance matters. Legal Services responsibilities include
administration of litigation for and against Municipality, advice to Council; manage and enforce compliance with
legislations and collective agreements; draft, manage and co-ordinate all legal and employment contracts; advice on
labour matters; drafting by – laws and policies in compliance with legislation and provide legal advice to the
municipality. Legal representation for employees has been approved by Accounting Officer and matters are defended
and no default judgments issued against Municipality.
Cases are defended and referred to Attorneys, litigation progress reports per Attorneys firm available; improvement
of legal advice to Council and Executive Management. Availability of drafted service level agreements; response
when sections requested to submit contracts for vetting; referral of MOU’s and service legal agreements; By laws
available; council rules and policies available. The legal cases are recorded in litigation register which is monitored,
we also have litigation trend analysis report for each quarter wherein litigation trends are identified and monitored
(attended).
The municipality attends to legal matters and limit litigation risks by having sessions with affected departments to
avoid litigation and risk repetition. Letters of demand are attended to urgently by responding to the demand filed
against Mbhashe Local Municipality to avoid matters referred being to Court and incur legal costs.
Litigation within municipality occurs (causes of action) as a result of alleged unlawful arrest, assault, land evasion,
illegal demolition of houses, vehicle impound and contract management breach etc.
Litigation trend analysis is available and very important for the municipality to assess litigation status for each matter;
financial impact of litigation and litigation risks. Find below information regarding legal matters as per litigation
register:
• Finalised = 12
• Non litigious = 3
• Pending = 45
• Defended cases = 38
More than 75% of the pending matters are defended.
113 |Audited 2017/18 Annual Report
RISK MANAGEMENT: Risk management is the systematic and formalized process to identify assesses, manage
and monitor risks. The unit has the responsibility of coordinating and supporting the overall institutional risk
management process. The process of identifying, assessing and managing risk remains the responsibility of
management.
Risk Management in the municipality is active and meetings are sitting as planned. Based on the legislative mandates
and to derive the benefits that would enhance the effectiveness and efficiency of the institution in meeting its
obligation as stated below. The following risk registers are available:
Risk Implementation Plan
Strategic Risk register
Operational Risk register
ICT Risk register
Fraud Risk register
Risk Management is institutionalized and has been implemented both at operational and strategic levels in the
Municipality. Operationally, each Department has a Risk Champion, consultative session taking place and
departments are reporting on risk on monthly basis. Operational risk registers are updated monthly. Fraud risk
register is updated quarterly. Fraud and Anti – Corruption Policy and Framework has been adopted by Council.
Further to this and to fulfil information and Communications Technology (ICT) governance requirements an
additional separate ICT Risk Register.
Mbhashe Local Municipality had two risk committee meetings during 2017/2018 financial year. Risk management
has been institutionalised by departments and monitoring which involves checking of risk is taking place on a
regular basis.
During fourth quarter we conducted risk assessment which is the process of quantifying or qualify levels of risk,
prioritise the most important risks. Inherent risks were assessed to establish level of exposure and residual risks
assessment to determine the actual remaining levels of risk.
114 |Audited 2017/18 Annual Report
When dealing with risk we checked the assessment tables wherein each risk is evaluated in terms of potential
impact. Risks which are irrelevant were removed from each department, some of the matters have removed and
transferred to other department.
We identified fourteen new strategic risks:
KPA 1: Inadequate ICT management and inadequate capacity.
KPA 2: Public protest and withholding of grants.
KPA 3: Unsustainable local economic growth and failure to attract investors.
KPA 4: Misappropriation of funds; negative audit outcome; financial and poor asset management.
KPA 5: Inadequate political oversight; fraud and corruption; inadequate planning; high exposure to
litigation.
Property services
R'000
Details
Year -1 Year 0
Actual Original Budget
Adjustment Budget
Actual Variance to Budget
Total Operational Revenue 1,177,836
839,948.00
1,339,948.00
1,381,294.00 -3%
Expenditure:
Employees 243,334
257,563.00
257,563.00
257,560.00 0%
Repairs and Maintenance 9,272
1,827,352.00
3,294,386.00
2,914,445.00 12%
Other 4,637,497
2,623,959.00
4,202,489.00
4,122,382.00 2%
Total Operational Expenditure 4,890,103
4,708,874.00
7,754,438.00
7,294,387.00 6%
115 |Audited 2017/18 Annual Report
Net Operational Expenditure -3,712,267
-3,868,926.00
-6,414,490.00
-5,913,093.00 8%
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.16.5
Capital Expenditure Year 0: Property; Legal; Risk Management and Procurement Services
R' 000
Capital Projects
Year 0
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 1,200,000.00
3,700,000.00
2,720,435.60 26%
3,700,000
OFFICE FURNITURE & EQUIPMENT
200,000.00
700,000.00
272,147.39 61%
700,000
PREFABS 1,000,000.00
3,000,000.00
2,448,288.21 18%
3,000,000
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.28.6
116 |Audited 2017/18 Annual Report
COMMENTS ON PERFORMANCE OF PROPERTY SERVICES OVERALL
Municipal properties include community facilities, social facilities, municipal properties and municipal investment
properties. The municipality budgets and maintains the properties every financial year to keep them neat and
usable.
Investment properties contribute on revenue collection through rentals from various leased properties. In the
2017/18 financial year a total of 41 properties which include billboards have been leased to new lessees and some
were reviewed. The leasing of properties has a potential to increase revenue for the municipality.
0
117 |Audited 2017/18 Annual Report
COMPONENT J: MISCELLANEOUS
MUNICIPALITY DOES NOT HAVE AIRPORT, ABATTOIRS, MUNICIPAL COURTS AND
FORESTRY.
COMPONENT K: ORGANISATIONAL PERFORMANCE SCORECARD
SECTION A1: SERVICE DELIVERY PERFORMANCE FOR 2017/18
A1.1: SUMMARY OF ANNUAL ORGANISATIONAL PERFORMANCE RESULTS
SECTION A1: SERVICE DELIVERY PERFORMANCE FOR 2017/18
A1.1: SUMMARY OF ANNUAL ORGANISATIONAL PERFORMANCE
RESULTS
118 |Audited 2017/18 Annual Report
SUMMARY OF ANNUAL PERFORMANCE PER KEY PERFORMANCE AREA
KPA Total No Of
KPIs
Number KPI’s
not met
No. of KPI’s
met
Percentage
Achieved
Municipal Transformation and Institutional
Development
11 1 10 90%
Service Delivery 52 5 47 90%
Local Economic Development 32 0 32 100%
Municipal Financial Viability 17 0 17 100%
Good Governance 22 0 22 100%
Total 134 6 128 96%
119 |Audited 2017/18 Annual Report
SUMMARY OF ANNUAL PERFORMANCE PER DEPARTMENT
DEPARTMENT Total No Of
KPIs
Number KPI’s not
met
No. of KPI’s
met
Percentage
Achieved
Corporate Services 12 1 11 92%
Infrastructure 24 2 22 92%
Community Service 16 2 14 88%
Developmental Planning 49 2 47 96%
Budget and Treasury 14 0 14 100%
Municipal Managers Office 20 0 20 100%
Total 135 7 128 94%
120 |Audited 2017/18 Annual Report
SUMMARY OF THE COMPARISON OF INSTITUTIONAL PERFORMANCE WITH
PREVIOUS FINANCIAL YEAR
KPA 16/17 FY 17/18 FY VARIANCE
1. MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT 84 % 90% 6%
2. BASIC SERVICE DELIVERY AND INFRASTRUCTURE SERVICES 70 % 90% 20%
3. LOCAL ECONOMIC DEVELOPMENT 78 % 100% 22%
4. MUNICIPAL FINANCIAL VIABILITY 82 % 100% 18%
5. GOOD GOVERNANCE AND PUPLIC PARTICIPATION 85 % 100% 15%
TOTAL 82 % 96% 14%
121 |Audited 2017/18 Annual Report
SUMMARY OF COMPARISON OF THE PERFORMANCE FOR THE 17/18 FINANCIAL
YEAR
KPA Q 1 Q 2 MID TERM Q 3 Q 4 ANNUAL
MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT 90% 80% 85% 86% 75% 90%
SERVICE DELIVERY AND INFRASTRUCTURE SERVICES 71% 78% 75% 83% 83% 90%
LOCAL ECONOMIC DEVELOPMENT 67% 88% 76% 71% 90% 100%
MUNICIPAL FINANCIAL VIABILITY 85% 94% 90% 90% 89% 100%
GOOD GOVERNANCE AND PUPLIC PARTICIPATION 67% 76% 72% 100% 94% 100%
TOTAL 78% 83% 81% 93% 84% 96%
122 |Audited 2017/18 Annual Report
DETAILED PERFORMANCE
123 |Audited 2017/18 Annual Report
STRATEGIC
OBJECTIVE
STRATEGY PROJECT INDICATOR INDI
CAT
OR
NO
ANNUAL TARGET
& ANNUAL
BUDGET
2017/18 ACTUAL
PERFORMANCE
RATING 2016/17 ACTUAL
PERFORMANCE
REASONS
FOR
DEVIATION
REMEDI
AL
ACTION
RESPONSIBILITY
KPA 1: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT
To provide and
enhance skills
among the
Councilors,
Ward
Committees
,Employees and
Ward
Committees to
ensure effective
service delivery
Implementati
on of the
training plan(
approved
WSP)
Training and
Development
Number of
trainings
interventions
implemented
for Councilors,
Traditional
Leaders and
Employees as
per approved
WSP
MTI
1.1
5
Annual Budget
(R 1 479 250)
The target is achieved. The
means of verification as per
POE are as follows:
1. SALGA workshop for
Councilors held in EL from 18
to 20 June 2018 and
Attendance register.
2. Attendance register for
PMS workshop of employees
held on 1st August 2018
3. Attendance register for an
induction workshop held for
Councilors and traditional
leaders. 4.
Attendance register for Job
description writing workshop
held on the 29 & 30 of
August 2017 5.
Attendance register for ICT
employees that attended
CTU training solutions
3 This target was not
applicable in 2016/17
FY
N/A N/A Senior Manager :
Corporate
Services
Study
Assistance
Number of
Councillors and
Employees
registered for
formal
qualification as
per approved
WSP
MTI
1.2
5
(R 200 000)
The target is achieved. The
means of verification as per
POE are as follows:
5 formal qualification for
employees and Councillors.
Which serves as follows:
Cllr T. Goniwe- LLB
3 24 employees
acquired a formal
qualification during
2016/17
N/A N/A Senior Manager :
Corporate
Services
124 |Audited 2017/18 Annual Report
Mr S. Ntshinga-Advanced
Labour Law
Mr Mashologu-Basic
Archives and Records
Management. Municipal
Financial Management
Course.
Cllr LL. Sangqu- National
Higher Certificate in
Accountancy. All of the
above are submitted in the
file.
Unemployed
Programs
Number of
learners
participating in
Internships and
WIL
MTI
1.4
50
(R 15 000 000)
The target is achieved. The
means of verification as per
POE are as follows:
Generated report from the
system has been submitted
on the number of interns
(98) which were captured
and retained in the system.
3 49 interns were
recruited and
captured into the
system
N/A N/A Senior Manager :
Corporate
Services
To maintain
organizational
structure that
will ensure
effective and
efficient service
delivery
Review of
organizationa
l structure
Organogram
Review
Submitted
reviewed
organogram to
MAYCO
MTI
2.1
1
(R0)
The target is partially
achieved. The means of
verification as per POE are as
follows:
Organogram, Management
minutes and agenda for LLF
are submitted however there
is no proof of submission to
MAYCO
2 The reviewed
organogram was
submitted to EXCO
Councilors
are still
engaging with
the proposed
structure
Organogr
am to be
submitte
d to
MAYCO
in the
next FY
which
2018/19.
Senior Manager :
Corporate
Services
Maintain low
vacant rate
Recruitment
and Selection
No. of recruited
employees
MTI
2.2
13
(R 232 500)
The target is achieved. The
means of verification as per
POE are as follows:
The following evidence has
been submitted:
4 59 employees were
recruited in 2016/17
FY.
N/A N/A Senior Manager :
Corporate
Services
125 |Audited 2017/18 Annual Report
1. Appointment letter for
Senior Manager Operations
2. Appointment letter for
Senior Manager Community
Services 3.
Appointment letter for
Communications manager
4. Appointment letters for
Ten (10) General Assistants
5. Appointment letter for
Loader operator 6.
Appointment letter for TLB
Operator 7.
Appointment letter for Roller
operator 8.
Appointment letter for Jaw
Crusher operator
To ensure
effective
service delivery
through
implementation
of PMS
Conduct
quarterly,
mid-yearly
and annual
Performance
assessments
Performance
management
Number of
performance
assessments
conducted
MTI
3.1
4
(R0)
The target is not achieved.
The means of verification as
per POE are as follows:
There is no evidence
provided in the file to
support that performance
assessment was conducted.
1 This target was not
applicable in 2016/17
FY.
It was not
conducted
because of
non-
availability of
panel to do
assessments
Will
change
approach
in the
next
financial
year by
having a
panel
Senior Manager :
Corporate
Services
Wellness
campaigns,
Sport
Programs for
Municipal
Employees
and
councilors
Employees'
and
Councilors’
Wellness
Number of
wellness
programs
organized
MTI
3.2
12
(R 1 000 000)
The target is achieved. The
means of verification as per
POE are as follows:
8 wellness programs were
organises. The Following
serves as an example 1.
Attendance register for
Bonitas flu vaccine for
employees. 2. Three
invitations to friendly games
3. Attendance register for
3 There were 5 wellness
programs that were
organized. Namely: 3
Sport wellness
programs, Counselling
program and check-up
service.
N/A N/A Senior Manager :
Corporate
Services
126 |Audited 2017/18 Annual Report
staff and employee wellness
meeting. 4.
Attendance register for
Mbhashe friendly games
5. Attendance register for
the incoming match 6.
Attendance register for
Counselling session
Ensure effective
and efficient
tool of lowering
cost to leverage
service delivery
through ICT
enabled equal
access to
municipal
information and
services
Ensuring
Business
Continuity
Implementati
on Disaster
Recovery plan
No of reports
on backups,
Test and
Restore
MTI
4.1
1
(R 1 000 000)
The target is achieved. The
means of verification as per
POE are as follows:
Signed report on Number of
reports of backups, test and
restore done.
3 Disaster recovery plan
was developed and
submitted
N/A N/A Senior Manager :
Corporate
Services
To ensure the
implementation
of PMS by 2017
and improve
institutional
performance
through skills
development
and change
management
Review of the
PMS
framework
Review PMS
Framework
Reviewed and
submitted PMS
framework to
council
MTI
5.1
Reviewed PMS
Framework
(R 120 000)
The target is achieved. The
means of verification as per
POE are as follows:
Reviewed PMS Framework,
List of policies taken to
Council and Council
Resolution is attached
3 Reviewed PMS
Framework was
submitted
N/A N/A ALL HODs
improve
performance,
through
monitoring
and
evaluation of
reports
Performance
Reporting
Number of
Performance
Reports
MTI
5.2
6 Performance
reports
(R0)
The target is achieved. The
means of verification as per
POE are as follows:
Mid-year unaudited, Quarter
2 Performance report,
Quarter 4 unaudited
Performance report
2017/18, Quarter 1 2017/18
unaudited Performance
report, Quarter 3 unaudited
3 Q1 Performance
report, mid-year
performance report,
Q2 performance
report, Q3
performance report,
4thQ 2015/2016
Performance report
and Annual
Performance
N/A N/A Senior Manager
Operations
127 |Audited 2017/18 Annual Report
performance 2017/18 and
Quarter 4 2016/17
unaudited performance
report are submitted
2015/2016 were
submitted.
Development
of the Annual
Report
Annual
Report
development
Developed
Annual Report
MTI
5.3
Credible and
adopted Annual
Report 16/17
(R 160 000)
The target is achieved. The
means of verification as per
POE are as follows:
A copy of 2016/17 Annual
Report is submitted
3 Adopted Annual
report for 2015/2016
was submitted.
N/A N/A Senior Manager
Operations
STRATEGIC
OBJECTIVE
STRATEGY PROJECT INDICATOR INDI
CAT
OR
NO
ANNUAL TARGET 2017/18 ACTUAL
PERFORMANCE
RATING 2016/17 ACTUAL
PERFORMANCE
REASONS
FOR
DEVIATION
REMEDI
AL
ACTION
RESPONSIBILITY
KPA 2: SERVICE DELIVERY & INFRASTRUCTURE DEVELOPMENT KPA 2 SERVICE DELIVERY
To develop,
maintain and
upgrade quality
infrastructure
through
integrated
planning,
taking short,
medium and
long term
needs
into
consideration,
and fulfilling
these within
the parameters
of sound
financial
By
constructing
150 km of
gravel road
Construction
of new gravel
roads
Number of KM
of gravel roads
constructed
SD
1.1
30km
(R 19 406 802)
30km 3 154.4km of access
road, 5 Completion,
access road
certificates There was
additional provincial
funding that was
provided to the
Municipality which
resulted to the
institution being able
to do more
kilometres.
N/A N/A Senior Manager:
Infrastructure
By
maintaining
769 km of
gravel roads
gravel road
maintenance
Number of KM
of gravel roads
maintained
SD
1.2
300km
(R 8 401 700)
315.1km 3 691.2km done on
maintenance of gravel
roads.
There was additional
provincial funding that
was provided to the
Municipality which
resulted to the
institution being able
N/A N/A Senior Manager:
Infrastructure
128 |Audited 2017/18 Annual Report
management
by 2022
to do more
kilometres.
By upgrading
of storm
water
facilities
upgrading of
storm water
Number of
storm water
facilities
upgraded
SD
1.4
10 No. of storm
water facility
upgraded
(R 550 000)
10 3 15km done and
project status report
on upgrading of storm
water channels was
submitted.
N/A N/A Senior Manager:
Infrastructure
By
maintaining
of surfaced
roads
surface roads
maintenance
Number of
surfaced roads
maintained
SD
1.5
11 km
(R 1 700 000)
11km 3 This target was not
applicable in 2016/17
FY.
N/A N/A Senior Manager:
Infrastructure
By paving 25
000 square
metres of
internal
streets side
walks
Paving Number of
square meters
of paved side
walks
SD
1.6
10 000m2
(R 2 115 000)
8 361.50 m2 2 5.2km of paved
sidewalks was done
during 2016/17 FY.
Delays due to
late delivery
of bricks
Revise the work plan include the loss time and complete the remaining square metres on quarter 1 of 2018/19
Senior Manager:
Infrastructure
By
constructing1
0 formal
bridges
structures
Construction
of bridges
Number of
formal bridges
constructed
SD
1.7.1
Gabion baskets and
bridge approaches
complete and
practical completion
(R 7 342 123)
0 1 Foundations
completed, out of 8
bridge piers 7 were
completed during
2016/17 FY.
Encountered
delays were
Inability of
concrete
suppliers to
deliver
concrete to
site due to
distance,
Incapacity of
contractor’s
personnel
60% of
bridge
deck
complete
. The
contracto
r has
requeste
d
another
extension
of time
and has
since
Senior Manager:
Infrastructure
129 |Audited 2017/18 Annual Report
and rain
weather
changed
their
personne
l on site.
PMU to
monitor
the
progress
of the
team on
set
targets
SD
1.7.2
Installation of
culverts and bridge
approaches
complete
(R 2 000 000)
0 2 This target was not
applicable in 2016/17
FY.
Encountered
delays are
reliance of
suppliers on
payment
certificates.
Petrol
shortages and
tool supply.
Late payment
of labours
and
inclement
weather
40% of
foundati
ons
complete
. PMU
section
to
monitor
payment
s of
suppliers
to avoid
continuit
y of the
same
delays.
Senior Manager:
Infrastructure
By providing
grid
electricity to
1860
qualifying
households
Shixini and
Ntsimbakazi
electrification
projects
Number of
households
provided with
grid electricity
SD
1.8
560
(R 14 000 000)
808 4 601 households were
provided with
electricity during
2016/17 FY and also
there were additional
villages that were
provided with
electricity, namely
Kabakazi and Nyokana
Village
N/A N/A Senior Manager:
Infrastructure
130 |Audited 2017/18 Annual Report
By providing
solar energy
to qualifying
households
Installation of
solar system
Number of
households
provided with
solar energy
SD
1.9
1000
(R0)
2948
4 2316 households were
provided with solar
systems also
The target was based
on the projected
transfer and later the
transfer was
increased.
N/A N/A Senior Manager:
Infrastructure
By installing
high masts
Installation of
high mast
Number of high
masts installed
SD
1.10
Installation
completed and
practical completed
(R 1 000 000)
3 3
4 high masts were
installed in Elliotdale
and Cwebe Dwesa.
N/A N/A Senior Manager:
Infrastructure
By upgrading
street lights
in all towns
upgrading of
street lights
Number of
street lights
upgraded
SD
1.11
20
(R 1 225 000)
35 steel poles
2 A report on the
upgrading of street
lights at Elliotdale.
Delay due to
late delivery
of material
fast track
progress
in on site,
project
will be
complete
d end
July
Senior Manager:
Infrastructure
By
maintaining
street lights
in all towns
maintenance
of street
lights
Number of
street lights
maintained
SD
1.12
610
(R 1 380 000)
669
3 633 street lights
maintained
N/A N/A Senior Manager:
Infrastructure
By
constructing
3 Sport
facilities
construction
of sports
fields
Number of
Sports field
constructed
SD
1.13
2 contractors
appointed, bulk
earthworks, soccer
pitch, bulk
earthworks
(R 10 437 107)
N/A N/A N/A N/A N/A Senior Manager:
Infrastructure
SD
1.13.
1
0 1 This target was not
achieved in 2016/17
FY. Documents that
were provided in the
Re-
advertisemen
t was done
and there
was no
To fast
track re-
advertise
ment of
project
Senior Manager:
Infrastructure
131 |Audited 2017/18 Annual Report
file were designs and
Tender documents.
qualified
bidder
SD
1.13.
2
0
2 This target was not
applicable in the
2016/17 FY.
Delayed due
to increment
weather and
land invasion
contracto
r to fast-
track the
progress
and
municipal
ity to
resolve
the issue
of land
invasion
Senior Manager:
Infrastructure
By
constructing
10
community
halls
construction
of 2
community
halls
Number of
community
halls
constructed
SD
1.14
2
(R 9 277 682)
0 2 Report on
construction of
Dutywa River
Community Hall,
Completion certificate
and Site minutes were
submitted.
Poor
performance
of contractor
due to cash
flow
problems and
inclement
weather
The
progress
as end of
quarter 4
is 36% on
average.
The
meeting
was held
for the
contracto
r to
revise
the
works
program
me. To
fast track
the
progress,
closely
monitori
ng the
work,
and
project
Senior Manager:
Infrastructure
132 |Audited 2017/18 Annual Report
will be
complete
d by end
July 2018
By
maintaining
Municipal
buildings
Maintenance
of municipal
buildings
Number of
municipal
buildings
maintained
SD
1.16
4
(R 3 000 000)
4 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Corporate
services
By upgrading
municipal
offices
Upgrading of
municipal
offices
Number of
municipal
offices
upgraded.
SD
1.17
1
(100 000)
1 3 SM: Corporate
services
By
constructing
borehols
Boreholes Number of
boreholes
constructed
SD
1.18
2 (500 00) 2 3 SM: Corporate
services
By
maintaining
25
community
halls
maintenance
of community
halls
Number of
community
halls
maintained
SD
1.19
3
(R 3 000 000)
3 3 This target was not
applicable in 2016/17
FY
N/A N/A SM: Community
services
By providing
community
facilities
equipment
supply of
chairs
Number of
facilities
provided with
equipment
SD
1.20
17
(R 727 892)
10 2 This target was not
applicable in 2016/17
FY
N/A N/A SM: Community
services
By fencing
cemeteries in
towns
Fencing of
cemeteries
Number of
cemeteries
fenced
SD
1.22
5
(R1 310 532)
3 2 SM Community
Services
By
constructing
3 parks
Establishmen
t and
management
of parks
Number of
parks
constructed
SD
1.23
1
(175 000)
0 1 Identified place in
W/Vale for
construction of parks
were not suitable to
use for the
construction of park
as it was identified by
the community that it
would be dangerous
The project is
not
applicable in
this financial
year as there
is no budget
in place.
SM Community
Service
133 |Audited 2017/18 Annual Report
for their children to
play with.
By
maintaining 4
parks
Maintenance
of park
Number of
parks
maintained
SD
1.24
1
(R 175 000)
1 3 This target was not
applicable in 2016/17
FY
N/A N/A SM: Community
services
By
constructing
public
ablutions
Construction
of public
ablution
facility
Number of
public ablution
facilities
constructed
SD
1.25
1
(R1 000 000)
0 1 Progress report on
construction of
ablution facilities in
Dutywa town was
submitted.
Delays due to
land claims
Practical
completi
on to be
issued in
SM: Infrastructure
By
Maintaining 6
public
ablutions
Public
ablution
management
Number of
ablution
facilities
maintained
SD
1.26
3
(R2 000 000)
2 2 This target was not
applicable in 2016/17
FY
Funds were
exhausted
before the
completion of
the project
To be
complete
d in the
next
financial
year
2018/19
SM: Community
services
By
constructing
animal pound
Animal pound Number of
animal pound
constructed
SD
1.27
1
(R 1 545 000)
1 3 This target was not
achieved in 2016/17
FY. The following
serves as an example:
Foundations, supper
structure and roof
structure were done
on construction of
animal pound in
Dutywa.
Delays due to
inclimate
weather
Fastback
progress
on the
external
works
SM: Infrastructure
By
constructing
ECDCs
Construction
of ECDC
Number of
ECDCs
constructed
SD
1.28
Final design reports
(R 1 545 000)
Final design report 3 This target was not
applicable in 2016/17
FY
N/A N/A SM: Infrastructure
By
constructing
transfer
station
Dutywa
transfer
statio
Number of
transfer
stations
constructed
SD
1.29
Construction works
(R 613 212)
0 2 This target was not
applicable in 2016/17
FY
Design report
and draft
tender doc.
Submitted.
Numerous
delays section
The
municipal
ity to
fastrack
tendering
process
SM: Infrastructure
134 |Audited 2017/18 Annual Report
32 and later
the decision
to
incorporate
the project
with the
rehabilitation
of two (2)
dump sites
(Dutywa &
Willowvale)
for
appointm
ent of
the
contracto
r in the
next
financial
year
By upgrading
landfill site
upgrade of
Elliotdale
landfill site
Number of
landfill sites
upgraded
SD
1.30
Lining, storm water
and latchate
collection tank and
stand complete
(R 1 000 000)
0 2 Landfill site at
Elliotdale was
upgraded during
2016/17 FY.
Budget for
storm water
and leachate
collection
tank and
stand was
limited
The
municipal
ity to
ensure
the
budget is
available
and
continue
monitor
progress
on set
targets in
the next
Financial
Year
SM: Infrastructure
By
rehabilitating
2 dump sites
Rehabilitation
of Dutywa
and
Willowvale
dump site
Number of
dump sites
rehabilitated
SD
1.31
Draft design report
(R 1 000 000)
Draft design report. 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Community
services
By
maintaining
of Drivers and
Vehicle
Licensing
facilities
Maintanance
of Drivers &
Vehicle
Licensing
facilities
Number of
Drivers and
Vehicle
Licensing
maintained
SD
1.32
1
(R 700 000)
0 1 This target was not
applicable in 2016/17
FY
The matter is
between
facilities and
the
Contractor
that was
appointed for
Facilities
office to
sort out
the issue
with the
SM: Community
services
135 |Audited 2017/18 Annual Report
maintenance
of Elliotdale
Facilities
service
provider.
To provide
effective and
affordable
services to the
community
where
these are a
direct function
of the
Municipality by
2022
By providing
waste
management
services in an
environment
al friendly
and
sustainable
manner to all
households of
Mbhashe
Waste
Management
Services
Number of
households
serviced
SD
2.1
60124
(R 1 710 000)
60124 3 Report on 60124
household that were
provided with waste
management services.
N/A N/A SM: Community
services
By providing
support to
171 ECDCs
supply of
ECDCs
material
Number of
ECDCs
supported
SD
2.2
30
(R 400 000)
0 1 This target was
achieved during
2016/17 FY. 77 ECDC’s
were supported.
ECDC’s were
not support
due to
incapacity of
developing
Spec. The bid
specification
committee
did not
approve of
specification
that was
submitted
The
project
has since
been
discontin
ued as it
is no
longer
forming
part of
SDBIP for
2018/19
FY
SM: Community
services
By supplying
32 rural
sports fields
with
equipment
management
and
operation of
sports
facilities
Number of rural
sports field
supplied with
equipment
SD
2.3
32
(R 326 900)
32 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Community
services
By providing
road safety
features
(road
marking,
signage,
road safety
features
Number of
roads safety
features
implemented
SD
2.4
5
(R 100 000)
5 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Infrastructure
136 |Audited 2017/18 Annual Report
traffic
calming and
road closure)
By
providing180
law
enforcement
operations
throughout
Mbhashe
law
enforcement
operations
Number of law
enforcement
operations
SD
2.5
36
(R0)
65 5 Signed report on 7 law
enforcement
operations which
were conducted.
There were
joint
operations
with other
sector
departments.
N/A SM: Community
services
By preventing
criminal
activities
law
enforcement
operations
Number of
potential crime
scenes visited
SD
2.6
16
(R0)
32
5 This target was not
applicable in 2016/17
FY.
There was a
need due to
increased
crime rate.
N/A SM: Community
services
By offering
security
services in all
Municipal
assets
Security to
municipal
assets
number of sites
secured
SD
2.7
20
(R 8 400 000)
20 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Community
services
By providing
Christmas
light to all
towns
Christmas
lights
Number of
towns provided
with Christmas
light
SD
2.8
3
(R 800 000)
3
3 3 Towns provided with
Christmas lights in
Dutywa, Willowvale
and Elliotdale.
N/A N/A SM: Infrastructure
By providing
rescue
services
during peak
seasons along
the coast
life guards Number of
beaches
provided with
rescue services
SD
2.9
10
(R 1 188 000)
10 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM: Community
services
Ensure
maximum and
adequate and
land use
management
Development
and review of
coherent
spatial plans
LSDF No. of
developed
LSDFs
SD
3.2
2
(R 306 800)
2 3 1 LSDF was developed
and approved by
Council.
Late
appointment
of the service
provider
Both will
be
complete
d by
Decembe
r 2018.
SM:Develomental
Planning
137 |Audited 2017/18 Annual Report
practices by
2022
Surveying and
rezoning of
properties
Rezoning of
properties
No. of rezoned
properties
SD
3.3
100
(R 631 000)
0
2 Report on 10
properties that were
rezoned
The approval
for the
rezoning of
properties
could not be
done because
no power of
attorneys
were signed
by property
owners.
Worksho
p is
planned
for the 1st
quarter
of
2018/19
FY to
ratepayer
s to assist
in
understa
nding of
the POA.
SM:Develomental
Planning
Develop and
implement
measures in
compliance
with land use
Land Use
Scheme
Develop land
use scheme
SD
3.4
Developed land use
scheme
(R 215 250)
0 2 This target was not
applicable in 2016/17
FY.
Late
appointment
of the service
provider
Land use
scheme
will be
complete
by end
October
2018.
SM:Develomental
Planning
Ensure that all
municipal
properties are
properly
registered and
effectively used
Valuation of
properties
Valuations General and
Supplementary
valuations
developed
SD
4.1
Developed
supplementary
Valuation
(R 200 500)
Developed supplementary
Valuation
3 Reconciliation Report
on Billing Database vs
Valuation Roll
N/A N/A SM:Develomental
Planning
Continually
conducting
land audit to
determine
user and
open spaces
Land Audit Land Audit
report
developed
SD
4.2
Developed Land
Audit
(R 84 000)
0 1 There were three
reported land claims
during the FY 2016/17
Delays from
conveyancers
led to many
properties
being not
transferred
The
review of
the
policy on
sale of
municipal
propertie
s to
include
transfer
costs on
the cost
SM:Develomental
Planning
138 |Audited 2017/18 Annual Report
of the
property
so that
the
municipal
ity can
drive the
process
of
transfer
Reviewing
and
monitoring
compliance of
the lease
contracts
entered into
Lease
agreements
Number of
lease
agreements
reviewed and
monitored
SD
4.3
20
(R0)
0 2 41 lease agreements
were signed and
reviewed
Only 19 lease
agreements
were
reviewed and
monitored.
Poor
response/
reluctance
from leases
for lease
reviews led to
further
investigation
than signing
of reviewed
leases.
Intervent
ion of the
legal
office will
lead to
urgent
resolutio
n with
those
reluctant
lesses
SM:Develomental
Planning
To ensure
compliance
with NBR and
any applicable
legislation by
2022 and
beyond.
Comply with
National
Building
Regulations
and
standards
when
approving
Building Plans
applications
as per
checklist
Approval of
Building Plans
Percentage of
building plans
approved
within statutory
timeframes (30
– 60 days)
SD
5.1
1
(R0)
1 3 30 days was the
timeframe used to
approve building plans
N/A N/A SM:Develomental
Planning
139 |Audited 2017/18 Annual Report
Facilitate
development of
sustainable and
viable human
settlements by
2022
Provision of
services to
informal
settlements
Basic Services
Infrastructure
Number of
informal
settlements
with full
services
SD
6.1
1
(R0)
1 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Provision of
houses for
destitute
households
Destitute
Housing
Number of
destitute
household
provided with
housing
SD
6.2
100
(R 30 000)
0 2 400 destitute
applications for
housing were
submitted
Delays from
the
department
of human
settlements
to appoint
the
contractor for
destitute
housing
As at end
of
2017/18
FY, the
progress
was 40%
with
timelines
of
completi
on and
60% will
be
complete
d in the
second
quarter
of
2018/19
FY
SM:Develomental
Planning
Establish new
townships for
human
settlements
development
Township
Establishmen
t
(Environment
al Report)
Number of
townships
established
SD
6.3
2
(R 482 400)
2 3 This target was not
applicable in 2016/17
FY.
N/A N/a
SM:Develomental
Planning
Facilitate
sustainable co-
ordination of
disaster relief
and response
by 2022
Implement
disaster
management
plan
Disaster
Mitigation
Responding to
reported
disasters
SD
7.1
1
(R 1 600 000)
1 3 100% disaster incident
that were assessed in
different areas were
assisted with material
relief.
N/A N/A SM: Community
Services
140 |Audited 2017/18 Annual Report
To ensure
adherence to
sound
environmental
practises and to
protect
environmentall
y sensitive
areas by 2022
Implementati
on of climate
change
mitigation
strategy
Land
rehabilitation
Number of
villages covered
with land
rehabilitation
SD
8.1
1
(R 300 000)
1 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Tree Planting Number of
villages covered
with tree
planting
SD
8.2
2
(R 54 800)
16 4 16 villages were
covered with tree
planting. And those
villages were not
mentioned.
There were
special
requests and
funds were
available due
to budget
savings.
N/A SM:Develomental
Planning
Alien Plant
removal
Number of
villages covered
with alien plant
removal
SD
8.3
1
(R 500 000)
3 4 This target was not
applicable in 2016/17
FY.
Number
increased due
to the
funding from
EPWP.
N/A SM:Develomental
Planning
Environmenta
l Awareness
Environmental
Awareness
Programmes
SD
8.4
2
(R 121 000)
4 4 4 Environmental
awareness programs
were organized
Requests and
joint co-
operation
from
government
departments.
N/A SM:Develomental
Planning
Compliance
and
monitoring
with
environment
al laws
Environmenta
l Compliance
Number of
measures
undertaken
SD
8.5
3
(R 199 300)
3
3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
STRATEGIC
OBJECTIVE
STRATEGY PROJECT INDICATOR INDI
CAT
ANNUAL TARGET 2017/18 ACTUAL
PERFORMANCE
RATING 2016/17 ACTUAL
PERFORMANCE
REASONS
FOR
DEVIATION
REMEDI
AL
ACTION
RESPONSIBILITY
141 |Audited 2017/18 Annual Report
OR
NO
KPA 3: LOCAL ECONOMIC DEVELOPMENT
To promote
agrarian reform
and increase
food security to
farming
households
Assistance
given to
emerging
farmers
Ward profiles Number of
wards with
agricultural
profiles
conducted
LED
1.1
10
(R0)
10 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Maize
Production
Number of
village
associations
assisted with
maize
production
inputs.
LED
1.3
40
(R 3 000 000)
40 3 Attached is a signed
report on 41
associates assisted
with maze production
and delivery notes on
all 41 associates
assisted with maize.
N/A N/A SM:Develomental
Planning
Fencing Number of
farming
projects
assisted with
fencing inputs
LED
1.4
6
(R 500 000)
6 3 Assessment report
from Dutywa
communal cemeteries
and report
N/A N/A SM:Develomental
Planning
Constructing
and
supporting
nurseries
Nurseries Number of
nurseries
supported
LED
1.5
2
(R 596 500)
2 3 1 Nursery was
revitalised.
N/A N/A SM:Develomental
Planning
Improving
quality of the
livestock
through
various
mechanisms
Stock remedy Number of
village farming
associations
assisted with
stock remedy
LED
1.6
32
(R 700 000)
32 3 32 wards were
assisted with stock
remedy
N/A N/A SM:Develomental
Planning
Feedlots Number of
village feedlots
assisted
LED
1.7
2
(R 330 000)
0 2 This target was not
applicable in 2016/17
FY.
Service
providers did
not respond
to Bids
Project
will be
finalized
in
2018/19
SM:Develomental
Planning
142 |Audited 2017/18 Annual Report
Financial
year.
Improving
quality of the
livestock
through
infrastructure
development.
Dipping tanks Number of
dipping tanks
renovated
LED
1.8
5
(R 450 000)
0 2 5 dipping tanks were
renovated.
Service
providers
were non
responsive
Material
will be
sourced
and
dipping
tanks will
done in
partners
hip with
farmers
in
2018/19
FY.
SM:Develomental
Planning
Shearing
Sheds
Number of
shearing sheds
built or
renovated
LED
1.9
3
(R 710 000)
0 2
5 shearing sheds were
renovated.
There was a
change in the
scope of work
due to
change on
site location
The
target
will be
achieved
in
2018/19
FY.
SM:Develomental
Planning
Boreholes Number of
boreholes
renovated and
drilled
LED
1.10
2
(R 300 000)
0 2 4 boreholes were
rejuvenated
Delays in the
implementati
on of project
The
project
will be
complete
d and
achieved
in the 2nd
quarter
of
2018/19
FY
SM:Develomental
Planning
To ensure use
of agricultural
value chain to
stimulate local
economic
Providing
support for
farming value
Sorghum and
Paprika
Support
Number of
projects
supported
LED
2.1
2
(R 400 000)
2 3 2 villages were
supported with
paprika and majingqa
macademia
N/A N/A SM:Develomental
Planning
143 |Audited 2017/18 Annual Report
development in
deprived areas
chain
activities
through value
chain
Encouraging
value
addition
through
support to
small scale
farmers
Bulungula
Lemon Grass
Number of
projects
supported
LED
2.2
1
(R 800 000)
1 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Implementing
agricultural
programs
focusing on
high value
crops
Macadamia
(Ward 22),
Macadamia
Expansion
(ward 27 and
ward 23) and
Moringa
(Ward 23),
Number of High
Value programs
supported
LED
2.3
3
(R 3 026 000)
3 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Capacitating
farmers to
meet quality
and safety
requirement
Information
Days
Number of
information
days held
LED
2.4
8
(R 324 000)
24. 5 16 Information days
were held.
Joint co-
operation
with DRDAR
in
implementing
the project.
N/A SM:Develomental
Planning
To reduce
poverty and
unemployment
through viable
and sustainable
job creation
strategies
Facilitating
employment
through
EPWP
projects
implementati
on
EPWP Number of
people
employed
through EPWP
LED
3.1
1079 EPWP
employees
(R 13 638 040)
1500 4
700 EPWP workers
were employed
through this program.
There was a
top up
funding from
equitable
share
N/A SM: CS, SMO, SM
INFRASTRUCTURE
, SM CORPORATE
SERVICES, SM DEV
PLANNING
144 |Audited 2017/18 Annual Report
Developing
an exit
strategy
(intervention
plan) through
SMME/Co-
operative
Intervention
Plan / Policy
Development of
SMME support
policy
LED
3.2
Developed SMME
support policy
(R0)
SMME support Policy 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
To encourage
investment
through viable
investment and
retention
strategies
Implementing
strategy that
promote
investment
and economic
growth.
Economic
Summit
Number of
investment
opportunities
profiled
LED
4.1
2
(R 200 000)
2 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
Promoting
entrepreneuri
al access to
markets.
SMME Road
shows
Number of
SMME’s linked
to formal
markets
through
exposure
LED
4.2
5
(R0)
10
5 1 SMME roadshow
was conducted.
This over
achieved due
to courtesy of
government
departments
and other
state organs
like SEDA.
N/A SM:Develomental
Planning
To ensure
reduction of
employment
rate through
development
and
capacitation of
enterprises
By installing
hawker stalls
hawker stalls Number of
hawker stalls
installed
LED
5.1
60
(R 1 500 000)
60. 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
Capacitation
and support
of SMMEs
and o-ops
SMME
Support and
funding
Number of
SMMEs
supported
LED
5.2
8
(R109 000)
0 2 This target was not
applicable in 2016/17
FY
The service
provider
couldn’t
provide the
goods as per
specifications
and as such
was rejected
hence non-
achievement.
More
stringent
measures
are put in
place for
2018/19
to curb
the
situation
of wrong
goods
being
delivered
.
SM: DP SM:
Infrastructure ,
SM Comm
145 |Audited 2017/18 Annual Report
LED AND
SMME
SPENDING
LED Spending LED
5.2.1
5% allocation to LED
( R109 000)
5.84% 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
Spending
towards local
SMME's
LED
5.2.2
20% of budget
spending towards
local SMMEs
( R109 000)
0 2 This target was not
applicable in 2016/17
FY
The target
couldn’t be
achieved
because of
huge
projects
which
required
upper
grades
which are
not
available
locally.
The
target
for
2018/19
is
lowered
and
consider
ed
reasona
ble for
achieve
ment.
SM:Develomental
Planning
SMME
Support
Number of co-
ops funded,
trained and
assisted
LED
5.3
20
( R109 000)
25 4 This target was not
applicable in 2016/17
FY
This is over
achieved due
to number of
requests and
the savings
from other
projects
N/A SM:Develomental
Planning
Capacitating
and assisting
informal
traders.
SMME
Support
Number of
informal traders
supported
LED
5.4
100
( R109 000)
125 4 This target was not
applicable in 2016/17
FY
This is over
achieved due
to discount
prices.
N/A SM:Develomental
Planning
Unlocking
marine and
coastal tourism
opportunities
Development
and
promotion of
ocean
economy
activities.
Ocean
Economy
Number of
ocean marine
economic
initiatives
supported
LED
6.1
1
(R 700 000)
1 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
146 |Audited 2017/18 Annual Report
To position and
promote
Mbhashe as a
tourist
destination of
choice
Use different
marketing
tools to
market
Mbhashe
tourism
destination
Tourism
Events
Number of
events hosted
and
participated on
LED
7.1
4
(R 550 000)
6 3 4 programs were
conducted on Tourism
N/A N/A SM:Develomental
Planning
Supporting
destination
tourism
through
infrastructure
development
Tourism and
Environmenta
l signage
Number of
tourists
destination
with clear
signage
LED
7.2
5
(R 56 000)
8 4 5 signage’s for
Tourism were done
This is over
achieved due
to discount
prices.
N/A SM:Develomental
Planning
Beach
Upgrade
Number of
tourism
infrastructure
projects
facilitated and
supported
LED
7.3
2
(R 100 002)
0
2 This target was not
applicable in 2016/17
FY.
Service
providers
became slow
in
implementing
the project.
Target
will
however
be met in
the first
month of
2018/19
financial
year.
SM:Develomental
Planning
Supporting
tourism
operators
LTO, Craft,
Homestays,
Trusts
Number of
tourism
operators
supported
LED
7.4
3
(R 261 400)
3 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
Develop,
revamp and
market heritage
properties/reso
urces to attract
tourists
Developing
and
revamping
heritage
properties
Renovation of
heritage sites
Number of
heritage
properties
developed
LED
8.1
5
(R375 000)
5 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
147 |Audited 2017/18 Annual Report
Developing
heritage
routes
Liberation
Heritage Rout
Develop
Liberation
Heritage Study
LED
8.2
Developed
liberation Heritage
study
(R375 000)
Liberation Heritage study 3 This target was not
applicable in 2016/17
FY
N/A N/A SM:Develomental
Planning
To maximize
the film sector’s
contribution to
the regional
economy
Support
programs in
the film
industry
Film Industry
Support
Number of
programs
supported
LED
9.1
1
(R 500 000)
1 3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
Sustainable
development
and
management of
the forest
resources to
provide
environmental,
social and
economic
benefits to
communities
Rehabilitate
and
transform
plantations
from jungles
to productive
timber
plantations
Forest
rehabilitation
Number of
plantations
rehabilitated
LED
10.1
1
(R0)
1
3 This target was not
applicable in 2016/17
FY.
N/A N/A SM:Develomental
Planning
STRATEGIC
OBJECTIVE
STRATEGY PROJECT INDICATOR INDI
CAT
OR
NO
ANNUAL TARGET 2017/18 ACTUAL
PERFORMANCE
RATING 2016/17 ACTUAL
PERFORMANCE
REASONS
FOR
DEVIATION
REMEDI
AL
ACTION
RESPONSIBILITY
KPA 4: MUNICIPAL FINANCIAL VIABILITY
To ensure
compliance
with budget
and reporting
regulations
other reforms.
Budget
according to
IDP priorities
mSCOA
Implementati
on
Aligned Budget
to the IDP
MFV
1.1
2018/19 IDP aligned
Budget which is
mSCOA compliant
(R1 251 307)
The target is achieved. The
means of verification as per
POE are as follows
Budget assessment
framework, Council
resolution of adopting the
final IDP & Budget, 2018/19
3 Report on final budget,
Council agenda and
council resolution was
submitted
N/A N/A Chief Financial
Officer
148 |Audited 2017/18 Annual Report
mSCOA compliant projects
and budget are submitted
Ensure
budget
process and
format is in
compliance
with budget
& reporting
regulation.
Full compliance
with budget &
reporting
regulation and
mSCOA
MFV
1.2
All reporting in
terms of NT
requirements are
executed within
required
timeframes until 30
June 2018
(R1 251 307)
The target is achieved. The
means of verification as per
POE are as follows
Sec 71 reports & grant
reports to NT from July
2017-June 2018 are
submitted
3 N/A N/A Chief Financial
Officer
To ensure
compliance
with prescribed
accounting
standards and
reporting
requirements
All gazetted
accounting
standards
implemented
and MFMA.
Financial
Management
Support
Compliance
with GRAP and
applicable
standards
MFV
2.1
Compliance with all
applicable and
effective GRAP
standards
(R 1 000 000)
The target is achieved. The
means of verification as per
POE are as follows
Checklist and Compliance
report are submitted
3 N/A N/A Chief Financial
Officer
To generate
AFS that fairly
present the
financial
position,
financial
performance
and cash flows.
Compile AFS
that fairly
present the
financial
position,
financial
performance
and cash
flows.
1. AFS
Preparation
2. Financial
Management
Grant
3. Annual
Regulatory
Audit
Full Compliance
with GRAP
standards
MFV
3.1
Maintain an
unqualified audit
opinion
(R 5 800 000)
The target is achieved. The
means of verification as per
POE are as follows
Proof of AFS submission to IA
3 Audit report, Proof of
submission of AFS to
AG was submitted
N/A N/A Chief Financial
Officer
To ensure that
all the
properties
within the
municipal areas
are valued for
rating purposes
Compile and
maintain
general
valuation roll
General and
Supplementa
ry Valuations
Supplementary
Valuation Rolls
MFV
4.1
Updated Valuation
Roll
(R0)
The target is achieved. The
means of verification as per
POE are as follows
Annual list of transfers, title
deed report and 4th
supplementary valuation roll
are submitted
3 Reconciliation Report
on Billing Database vs
Valuation Roll were
submitted
N/A N/A Chief Financial
Officer
149 |Audited 2017/18 Annual Report
as per 2014-19
GVR
Prompt
receipting
and banking
of all rates,
fees and
charges at
accessible
facilities.
1. Revenue
Enhancement
2. Data
Validation
Updated
revenue reports
MFV
4.2
45000000
(R 630 000)
The target is achieved. The
means of verification as per
POE are as follows
R49 329 020.64 has been
collected. The target was
over achieved by
R4 329 020.64. The revenue
report is attached which
reflects the collected
amount.
3 60 926 934.31 was
collected during
2016/17 FY.
N/A N/A CFO, SM
Community
Services, SM DEV
PLANNING, SM
INFRASTRUCTURE
, SM Corporate
Services
To alleviate
poverty to
improve quality
of household
life.
Investigate
and advise on
poor
households
to participate
in indigent
support
program.
Free Basic
Services
Updated
indigent
register
MFV
5.1
Updated Indigent
Register
(R833 825)
The target is achieved. The
means of verification as per
POE are as follows
Updated Indigent Register is
submitted.
4 A credible indigent
register was
submitted
N/A N/A SM Community
Services
Utilization of
equitable
share to
support
Indigent
Households.
The percentage
portion of
equitable share
allocated for
free basic
services
MFV
5.2
8284950
(R833 825)
The target is achieved. The
means of verification as per
POE are as follows
Expenditure report which
indicates the total amount of
R8 284 950 spent on waste
collection and free basic
service electricity provided
to households in all 32
wards.
4 This target was not
applicable in 2016/17
FY.
N/A N/A SM Community
Services
Meet
infrastructure
and
household
service needs
and backlogs
The number of
indigent
households
collecting free
basic services:
Electricity
MFV
5.3
2864
(R833 825)
The target is achieved. The
means of verification as per
POE are as follows
Eskom Distribution List on
number of household
provided with free basic
service electricity each
3 60 124 households
collecting free basic
services electricity was
submitted.
N/A N/A SM Community
Services
150 |Audited 2017/18 Annual Report
household receiving 50KWH
units
Number of
estimated
indigent
households
collecting free
basic services:
Alternative
Energy Sources
MFV
5.4
4555
(R833 825)
The target is achieved. The
means of verification as per
POE are as follows
4555 households provided
with free basic service
electricity. Financial report is
attached to support
evidence provided
3 60 124 households
were provided with
free basic service
electricity during
2016/17 FY.
N/A N/A SM Infrastructure
Value for
money
expenditure
Timeous
payment of
creditors in
compliance of
SCM
procedures
and the
MFMA
1. Vat
Recovery
2.
Expenditure
& payroll
management
Turnaround
time for paying
creditors
MFV
6.1
No over spending of
the approved
budget & sources of
funding by 30 June
2018
(R 422 127)
The target is achieved. The
means of verification as per
POE are as follows
Age analysis report, Petty
cash register, Incoming
register, section 66 report
are submitted. The reports
illustrates spending that has
been occurred
3 This target was not
applicable in 2016/17
FY.
N/A N/A Chief Financial
Officer
Efficient,
effective and
economical
supply chain
management
Compliance
with Supply
Chain
Regulations
and National
Treasury
guidelines on
procurement
processes
Full
implementati
on of the
SCM systems
No new
irregular
expenditure
incurred.
MFV
7.1
Ádhere to all
procedures in terms
of NT Circular 68
until 30 June 2018
(R262 500)
The target is achieved. The
means of verification as per
POE are as follows
Report on the
implementation of the SCM
Policy, Register of bid
awards, RFQ’s awarded ,
Register of new irregular
expenditure incurred as at
end June 2018, The new
irregular expenditure
incurred is above R200 000,
SCM deviations report and
contract register.
3 Report on new
irregular expenditure
incurred was
submitted.
N/A N/A Chief Financial
Officer
151 |Audited 2017/18 Annual Report
Ensure
transparent
SCM
processes
though
regular
reporting.
Development
of
Procurement
Plans
Number and
timeous
submission of
reports issued
MFV
7.2
Credible
procurement plan
with a progress on
its implementation
(R262 500)
The target is achieved. The
means of verification as per
POE are as follows
Departmental Procurement
plans which are submitted
once a year to SCM for
2017/18 have been
submitted. The procurement
submitted have projects
which have already been
awarded.
3 Procurement plan
2016/2017, Register
for advertised bids
awarded and SCM
deviation register was
submitted
N/A N/A Chief Financial
Officer
To manage,
control and
maintain all
assets of the
municipality.
Increase
budget
provision for
repairs and
maintenance
of assets to
be in line
with National
Treasury
norms.
GRAP
Compliant
Asset Register
8% or more
allocated for
Repairs and
maintenance
MFV
8.1
8% allocated for
Repairs and
maintenance
(R0)
The target is achieved. The
means of verification as per
POE are as follows
A signed report attached
showing 8% allocation of
repairs and maintenance.
3 This target was not
applicable in
2016/17FY.
N/A N/A Chief Financial
Officer
Regular
update of the
existing Asset
Management
System
Updated and
GRAP compliant
asset register
MFV
8.2
A complete and
updated GRAP
compliant Asset
Register by 30 June
2018
(R19 510 000)
The target is achieved. The
means of verification as per
POE are as follows
Updated GRAP Compliant
register has been submitted.
3 Audit report was
submitted on the
updated GRAP
compliant asset
register
N/A N/A Chief Financial
Officer
Ensure all
assets are
adequately
insured
Insurance cover
inclusive of all
municipal
assets as per
asset register
MFV
8.3
All Municipal Assets
to be fully insured
(R19 510 000)
The target is achieved. The
means of verification as per
POE are as follows
Report on asset
management, List of assets
insured by Indwe Risk
Services.
3 Signed Report on all
assets that were
insured was
submitted.
N/A N/A Chief Financial
Officer
152 |Audited 2017/18 Annual Report
To ensure
effective
utilization of
available fleet
Improving
monitoring
controls and
managing
fleet
Fleet
Management
Number of
vehicles
available,
Number of
vehicles with
tracking devices
MFV
9.1
Efficient utilisation
and monitoring of
the municipal fleet
(R0)
The target is achieved. The
means of verification as per
POE are as follows
Report on fleet
management, fuel register,
west bank reports reflecting
19 vehicles that have been
installed with tracking
device.
3 Signed report on 23
municipal vehicles
that are available and
19 cars with tracking
device was submitted.
N/A N/A Chief Financial
Officer
STRATEGIC
OBJECTIVE
STRATEGY PROJECT INDICATOR INDI
CAT
OR
NO
ANNUAL
TARGET/ANNUAL
BUDGET
2017/18 ACTUAL
PERFORMANCE
RATING 2016/17 ACTUAL
PERFORMANCE
REASONS
FOR
DEVIATION
REMEDI
AL
ACTION
RESPONSIBILITY
KPA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION Departmental
Score
To ensure clean
and
accountable
governance in
the municipality
by 2022
To identify,
assess,
prioritize and
monitor risk
exposure
Strategic and
Operational
Risk registers
Approved and
updated risk
register
GGP
1.1
Approved Strategic
Risk register, fraud
risk register and 6
Operational risk
registers
(R 230 000)
The target is partially
achieved. The means of
verification as per POE are as
follows
Insufficient evidence
submitted as the fraud risk
register was not submitted
only the Approved Strategic
Risk Register, 6 Operational
Risk Registers submitted
2 6 Operational Risk
Registers, Fraud and
Prevention Risk
Register, Strategic Risk
Register, ICT Risk
Register and 6
Attendance registers
for all departments
and Attendance
register for Risk
Management
workshop.
Risk
Assessment
was done for
strategic,
operational
and ICT risk
registers.
Only fraud
risk register
was not
assessed.
Fraud
risk
register
will be
done in
this new
FY in the
manage
ment
meeting.
Senior Manager
Operations
Identification
of legal risk
and attend
existing
litigations
Legal cases Number of legal
and compliance
register
GGP
1.2
75% of success rate
of legal cases
defended in Court
Updated legal and
compliance register
The target is achieved. The
means of verification as per
POE are as follows
Litigation register on the
number of legal cases that
were defended in court,
3 This target was not
applicable in 2016/17
FY.
N/A N/A Senior Manager
Operations
153 |Audited 2017/18 Annual Report
(R 1 500 000) number of cases that are
pending, Number of legal
cases that have been
finalised and non-litigious
cases. The following serves
as an example
Defended cases in court: 38
Pending: 45
Finalised:12
Non litigation:3
Develop and
implement
risk based
internal audit
plan.
Internal Audit
documents
Number of
Approved
Internal Audit
risk plan
GGP
1.3
1
(R0)
The target is achieved. The
means of verification as per
POE are as follows
1 Approved Risk based
Internal Audit Plan by
Council and Council
resolution
3 1 Approved Risk based
Internal Audit Plan
N/A N/A Senior Manager
Operations
Conduct
audits as per
Internal Audit
Annual Plan
Internal Audit
Assignments
No of audits
conducted
GGP
1.4
14 Audits
( R 410 000)
The target is achieved. The
means of verification as per
POE are as follows
15 Internal Audit report
which are as follows: Quarter
2 audited performance
report, Audit Mid-year
performance report,
2016/17 Annual
performance information,
2016/17 quarter 4 audited
performance information,
SCM audit report, Asset
management audit report,
EPWP IA report, Quarter 1
performance information
dated 10 October 2017, Dash
3 SCM Audit report, Q2
Audited Performance
report, Compliance
check list Audit report,
SCM Audit report
quarter 3, Q1 Audited
performance report,
Annual Performance
audited report
2015/2016, Audited
AFS report, Audited
SDBIP report were
submitted.
N/A N/A Senior Manager
Operations
154 |Audited 2017/18 Annual Report
board report, Audit report
on Lease agreement report,
Quarter 3 performance
report dated 12 April 2018,
AFS report are submitted
Co-ordinate
sitting of
council
oversight
structures
Convening of
Oversight
Structures
Meeting
No. of meetings
held by council
structures
GGP
1.5
44 meetings
( R 115 898)
The target is achieved. The
means of verification as per
POE are as follows
131 meetings of oversight
structures and council
structures have been held in
2017/18 minutes have been
submitted as evidence
5 63 attendance
registers and agendas
for meetings that
were held during
2016/17 were
submitted.
N/A N/A Senior Manager
Operations
To ensure
compliance
with legislation
Coordination
for the
development
and review of
institutional
policies and
by-laws
Developing of
policies
Developed
policies
GGP
2.1
24
(R0)
The target is achieved. The
means of verification as per
POE are as follows
24 policies has been
developed in 2017/18
and the names have been
submitted
3 This target was
splitted as per
department not as per
KPA.
N/A N/A Senior Manager
Operations
Reviewal of
policies
Reviewed
policies
GGP
2.2
89 The target is achieved. The
means of verification as per
POE are as follows
89 policies have been
reviewed in 2017/18 and the
names have been submitted
3 This target was
splitted as per
department not as per
KPA.
N/A N/A Senior Manager
Operations
Developing of
By-Laws
Developed By-
Laws
GGP
2.3
3
(R0)
The target is achieved. The
means of verification as per
POE are as follows
3 Developed By-Laws: Which
are as follows:
3 This target was not
applicable in the
2016/17 FY.
N/A N/A Senior Manager
Developmental
Planning
155 |Audited 2017/18 Annual Report
Accommodation By-Law,
Taxis-and Taxi Ranks By-Law
and Traffic By-Laws.
Review By-
Laws
Reviewed By-
laws
GGP
2.4
30
(R0)
The target is achieved. The
means of verification as per
POE are as follows
30 Reviewed By-Laws have
been submitted together
with the list of names for
each By-Law.
3 This target was not
applicable in the
2016/17 FY.
N/A N/A Senior Manager
Developmental
Planning
Document
enhancement
and disposal
No of Reviewed
institutional file
plan
GGP
2.5
1
(R0)
The target is achieved. The
means of verification as per
POE are as follows
A Reviewed Institutional file
plan has been submitted
3 Reviewed institutional
file plan was
submitted
N/A N/A Senior Manager
Corporate
Services
To strengthen
IGR
participation
and influence
to improve
collaboration
with the sector
departments by
2022
To strengthen
the
functionality
of IGR
Co-ordination
of IGR
meetings
No of IGR
meetings
GGP
3.1
4 IGR meetings
(R 90 000)
The target is achieved. The
means of verification as per
POE are as follows
1. Proof of submission,
minutes of the meeting and
attendance register dated 7
September 2017 2.
Proof of submission minutes
of the meeting and
attendance register dated 2
March 2018 3. Proof of
submission, minutes of the
meeting and attendance
register dated 4 May 2018
3. Proof of submission to
members, minutes of the
meeting and attendance
3 5 Invites and
Attendance registers
for IGR meeting
submitted during the
FY 2016/17.
N/A N/A Senior Manager
Operations
156 |Audited 2017/18 Annual Report
register dated 30 November
2018
To advocate
participation of
designated
groups in
governance and
Socio Economic
development
programs
Implementati
on of annual
plans of
designated
groups in line
with SPU
strategy
Programmes
for
designated
groups
No of
Programmes
implemented
for designated
groups
GGP
4.1
39 Programmes to
be Implemented
( R 1 240 585)
The target is partially
achieved. The means of
verification as per POE are as
follows
26 Programmes- 3 STI, TB
and cancer program, Youth
with disability programs
Commemoration of Human
Rights day program, Youth
driver training program,
Career EXPO program, 2
Back to school campaign
programs with pictures and
attendance registers,
Heritage day celebration
program with pictures and
attendance register, 2 Youth
program reports with
pictures, Military Veterans
program, Heritage day
celebration program with
pictures and attendance
register, Commemoration of
women’s month program
with pictures, Youth with
disability skills development
program, Youth program
(Career EXPO dated 12 April
2018, Youth Program
handing over of inputs and
implements to Agricultural
youth cooperatives dated 26
April 2018, Youth Program
(Skills development training
programme for persons with
disability, Youth program
report on the driver training
report program dated 16
2 21 Programmes for
Youth, Military
Veterans, Older
persons, Disabled
persons and Back to
School Campaign were
done and submitted.
3
Programmes
for Older
Persons could
not be
implemented
due to non-
availability of
budget as per
Mscoa
system.
1 Awareness
campaign
programme
on Disability
for
Councillors
was
postponed
due to non
availabity of
Councillors.
2
Programmes
for Military
Veterans
could not be
implemented
due to
members and
structure
which
became
dysfunctional.
7 Projects
and
Budget
for
program
mes for
Older
Persons
will be
captured
and
impleme
nted in
the
2018/19
FY
Awarene
ss
campaign
for
Councillo
rs on
Disability
will be
done in
the
2018/19
financial
year.
Military
veterans
structure
will be
reactivat
ed and
plan of
action
will be in
Senior Manager
Operations
157 |Audited 2017/18 Annual Report
April 2018, Older persons
and veterans program report
dated 30 May 2018., Report
on Youth day
Commemoration event
dated 16 June 2018, Sport
Tournament event report
and report on handover of
equipment and tools for
BAZA Agricultural youth
cooperatives have been
submitted.
programmes
of
establishmen
t of
Designated
groups’
structures
could not be
achieved
although
guidelines
and terms of
reference
were tabled
to the
council.
develope
d.
Establish
ment of
Designat
ed
groups
will be
tabled in
the
Council
structure
s with
clear
impleme
ntation
plan and
time
frames
for
2018/19
FY
Development
of HIV/AIDS
Strategy
Development
and
Implementati
on of
HIV/AIDS
Strategy
Developed
HIV/AIDS
Strategy
GGP
4.2
Development of
HIV/AIDS Strategy
(R 2 326)
The target is achieved. The
means of verification as per
POE are as follows
Developed HIV/AIDS
Strategy, Council resolution
and List of policies and
strategies that were taken to
Council have been submitted
3 Reviewed SPU
Strategy with Agenda
for Special EXCO.
N/A N/A Senior Manager
Operations
To ensure
strategic
development,
coordinated,
integrated
Coordinate
development
and
alignment of
the IDP,
Development
of IDP, SDBIP
and Budget
integration
Developed
IDP,SDBIP and
Budget
GGP
5.1
Reviewed IDP and
Budget
(R352 500)
The target is achieved. The
means of verification as per
POE are as follows
Council Resolution dated 30
May 2018, reviewed IDP and
3 EXCO and Council
agenda, CD of IDP and
copy of final SDBIP
2017-2022 were
submitted.
N/A N/A Senior Manager
Operations
158 |Audited 2017/18 Annual Report
planning,
budgeting,
reporting and
legislative
compliance on
governance
matters
SDBIP and
Budget
integration
Budget for 2018/19 is
submitted
Development
of SDBIP
2018/19
Approved SDBIP GGP
5.2
Developed SDBIP
(R352 500)
The target is achieved. The
means of verification as per
POE are as follows
Developed SDBIP is attached
in the file.
3 N/A N/A Senior Manager
Operations
To enhance and
promote
communication
in all municipal
activities
Reviewal and
implementati
on of
communicati
on strategy
and media
plan
Review
Communicati
on strategy
and Media
Plan
Reviewed
communication
strategy and
Media plan
GGP
6.1
Reviewed
Communication
Strategy
( R 160 000)
The target is achieved. The
means of verification as per
POE are as follows
Reviewed Communication
strategy, Council resolution
and list of policies and
strategies taken to Council
are submitted
3 Reviewed
Communication
Strategy was
submitted
N/A N/A Senior Manager
Operations
Programmes
as per
Communicati
on Strategy
and Media
Plan
No of
Programmes
implemented as
per
Communication
Strategy and
Media Plan
GGP
6.2
37 programs (R 753 900)
The target is achieved. The
means of verification as per
POE are as follows
40 Programs as per
communication strategy
have been implemented. The
following serves as an
example:
1. Three Reports on sitting of
LCF meetings.
2. Four media interview
Confirmation letters
3. Four LCF attendance
registers
4. 24 adverts and notices
3 This target was not
implemented in-terms
of communication
strategy. In 2016/17.
What was submitted
was newsletter and 41
adverts.
N/A N/A Senior Manager
Operations
159 |Audited 2017/18 Annual Report
5. Four Newsletters
6. Report on Executive
Mayor’s media interview
Implementati
on and
management
of customer
queries
Customer
Care
Management
Updated
customer care
register
GGP
6.3
Updated customer
care register
( R 10 000)
The target is achieved. The
means of verification as per
POE are as follows
Updated customer care
register is submitted
3 Updated Customer
Queries register was
submitted.
N/A N/A Chief Financial
Officer
To improve
branding and
signage of
municipal
properties
and assets
Branding of
municipal
Assets
No of municipal
assets branded
GGP
6.4
19 Branded
municipal assets
( R 380 000)
The target is achieved. The
means of verification as per
POE are as follows
Report with pictures of 19
municipal assets that have
been branded is submitted
3 Report on branded
municipal assets with
pictures
N/A N/A Senior Manager
Operations
To ensure that
all stakeholders
participate in
the affairs of
the municipality
Review and
implement
public
participation
and petition
strategy
Reviewal of
Public
Participation
and Petition
Strategy
Reviewed
public
participation
and petition
strategy
GGP
7.1
Reviewed Public
Participation and
Petition Strategy
( R 112 395)
The target is achieved. The
means of verification as per
POE are as follows
Reviewed public
Participation and petition
strategy, Council resolution
and list of policies taken to
Council are submitted
3 Reviewed Public
Participation and
Petition Strategy was
submitted.
N/A N/A Senior Manager
Operations
Strengthenin
g of
community
participation
structures
Meetings of
Ward
Committees
No. of reports
on Ward
Committees
GGP
7.2
4 Reports
(R0)
The target is achieved. The
means of verification as per
POE are as follows
4 Ward committee reports
and 4 proof of submission to
Speaker have been
submitted
3 Minutes and
attendance registers
for 3 Engagement
meetings
N/A N/A Senior Manager
Operations
160 |Audited 2017/18 Annual Report
To co-
ordinate
community
based
projects
steering
committee
meetings
Establishmen
t of PSCS
Project steering
committee
meetings
GGP
7.4
All
(R0)
The target is achieved. The
means of verification as per
POE are as follows
PSC minutes and attendance
registers. The dates for
meetings that were held are
as follows:
26 February 2018
8 March 2018
15 March 2018
22 March 2018
3 13 PSC minute sites N/A N/A SM Infrastructure
161 |Audited 2017/18 Annual Report
PERFORMANCE OF SERVICE PROVIDERS DURING THE 2017/2018 FINANCIAL YEAR
INTRODUCTION
Municipalities are required to assess the performance of service providers appointed in each financial year. In this regard, an internal performance assessment was conducted by Section 56 managers on various projects targeted for the 2017/18 financial year. Service Providers and Contractors are rated on the following categories:
Below Standard - The Contractor/Service Provider did not meet the basic requirements as spelt out in the tender or contract. This may result in the contract being cancelled and/or the retention fee being withheld from the contractor. The Contractor may be asked to rectify the problem or the contract may be cancelled and another Contractor/Service Provider may be appointed to complete the contract/ project.
Acceptable performance - The Contractor/Service Provider completed the project and met the basic requirements of the tender/contract. The standard of work was good enough, passable or adequate in terms of the requirements by the MLM.
Excellent performance - The Contractor/Service Provider completed the work above the standard required. The requirements of the tender were achieved above the expectation of the MLM. There is a high quality of work and outstanding results were achieved.
ANALYSIS OF THE SUPPLY CHAIN MANAGEMENT BID PROCESS WITHIN MLM
The purpose of this analysis is to determine the percentage of bids awarded as at the end financial year. This assessment is used to measure the effectiveness of the MLM’s Supply Chain processes.
Number of Bids on Contract Register
Number of Awards made
Number of completed projects
Number of Bids in Tendering Process
Number of projects still in
progress
Cancelled Projects
176 27
42 0 132 2
162 |Audited 2017/18 Annual Report
Results of performance assessment of service providers
Below Standard – 1.13%
Of all the projects awarded, as at 30 June 2018 in terms of performance levels the following summary reflects the
number of projects rated as below standard.
Acceptable performance – 75.00 %
Of all the projects awarded as at 30 June 2018 in terms of performance levels the following summary reflects the number of projects rated as acceptable.
Excellent performance – 23.86%
Of all the projects awarded, as at 30 June 2018 in terms of performance levels the following summary reflects the number of projects rated as excellent.
A copy of the Contract Register for the 2017/18 financial year is attached hereto as Annexure “A”
163 |Audited 2017/18 Annual Report
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE
(PERFORMANCE REPORT PART II)
INTRODUCTION
The organizational Development is a key transformation agent dealing with the structure of the Municipality to
ensure that it remains aligned to its strategy, job evaluation process and change management philosophy.
Organizational Development as a function is placed under Corporate Services Department
COMPONENT A: INTRODUCTION TO MUNICIPAL PERSONNEL
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES
Mbhashe Local Municipality currently employs 274 (including non-permanent positions) officials, who
individually and collectively contribute to the achievement of Municipality’s objectives. The primary objective of
Human Resource Management is to render an innovative HR service that addresses both skills development
and an administrative function
TOTALS, TURNOVER AND VACANCIES
Employees
Description
Year -1 Year 0
Employees Approved Posts Employees Vacancies Vacancies
No. No. No. No. %
Electricity 3 7 3 4 57%
Solid Waste Management
109 95 14 13%
Housing 7 9 7 2 22%
Infrastructure 59 41 18 29%
Local Economic Development 7 6 5 1 20%
ICT 3 6 3 3 50%
Archives 4 4 4 0 0%
Human Resource Services 28 20 8 28%
BTO Services 36 23 13 36%
Police 13 10 3 33%
164 |Audited 2017/18 Annual Report
Vacancy Rate: Year 0
Designations *Total Approved Posts
*Vacancies (Total time that vacancies exist using fulltime equivalents)
*Vacancies (as a proportion of total posts in each category)
No. No. %
Municipal Manager 1 0 0%
CFO 1 0 0%
Other S57 Managers (excluding Finance Posts) 5 0 0%
Traffic and Law Enforcement officers 30 4 50%
Fire fighters 0 0 Middle management: Levels 13-15 (excluding Finance Posts) 151 5 26%
Middle management: Levels 13-15 (Finance posts) 4 2 100%
Highly skilled supervision: levels 9-12 (excluding Finance posts) 69 21 30%
Highly skilled supervision: levels 9-12 (Finance posts) 10 3 30%
Total 133 45 34%
Turn-over Rate
Details
Total Appointments as of
beginning of Financial
Year
Terminations during the
Financial Year
Turn-over Rate*
No. No.
Year -2 15 2 15%
Law Enforcement 18 16 2 33%
Licensing Services 8 6 2 58%
Municipal Managers Office 47 31 16 38%
Total 208 366 271 97 27%
165 |Audited 2017/18 Annual Report
Year -1 117 2 19%
Year 0 21 5 24%
COMMENT ON VACANCIES AND TURNOVER OVERALL
Mbhashe Local Municipality has managed to recruit 19 employees in the 2017/18 financial year. Resignation
(4), Retirement (0), Disciplinary (3), Incapacity (0), Deceased (1),
4.2.1 POLICIES
HR Policies and Plans
Name of Policy Completed Reviewed
Date adopted by council or comment on failure to
adopt
% %
1 Recruitment and Selection Policy
100% 100% 30/05/2018
2 Subsistence and travelling Policy
100% 100% 30/05/2018
3 Vehicle Usage Policy
100% 100% 30/05/2018
4 Study Assistance Policy
100% 100% 30/05/2018
5 Career Path and Succession Planning Policy
100% 100% 30/05/2018
6 Employment Equity Plan
100% 100% 30/05/2018
7 Employment Equity Policy
100% 100% 30/05/2018
8 Acting Allowance Policy
100% 100% 30/05/2018
9
Transfer and Demotion Policy
100% 100% 30/05/2018
166 |Audited 2017/18 Annual Report
10 Training and Development Policy
100% 100% 30/05/2018
11 Leave Policy
100% 100% 30/05/2018
12 Internship Policy
100% 100% 30/05/2018
13 Overtime Policy
100% 100% 30/05/2018
COMMENT ON WORK FORCE POLICY DEVELOPMENT
During the period under review, thirteen (13) policies have been reviewed. This was done through a transparent
and consultative process, involving Councilors through a workshop and Labour through the Local Labour Forum.
The reviewed and newly developed policies went to council for adoption before implementation.
4.3 INJURIES, SICKNESS AND SUSPENSIONS
3 Injuries reported this f inancial year. 3 EPWP employees encountered some injuries while on
duty and were attended to through an occupational medical practit ioner. Two of them have
since been employees on a permanent basis and are receiving support from the municipality.
One has a permanent arm dysfunctionality. The municipality is in a process of appointing a
service provider who will take care of occupational injuries including reporting to the
department of labour.
Sick Leave The number of day’s sick leave taken by employees has service delivery and cost implications. The monitoring of sick leave identif ies certain patterns or trends. Once these patterns are identif ied, corrective action can be taken.
Salary band
Total sick leave
Proportion of sick leave
without medical
certification
Employees using sick
leave
Total employees
in post*
*Average sick leave
per Employees
Estimated cost
Days % No. No. Days R' 000
Lower skilled (Levels 1-;2)
Skilled (Levels 3-5) 250 0% 35 117 1.23
Highly skilled production (levels 6-8)
101 0% 20 107 1.24
167 |Audited 2017/18 Annual Report
COMMENT ON INJURY AND SICK LEAVE
There were 3 reported injuries in the workplace and all are EPWP employees. OHS committee is in place. The
municipality managed to register for COIDA. Sick leave administration was a challenge especially when there
was a loss of data during December. The department managed to recapture the lost data to update leave through
reconciliation.
Highly skilled supervision (levels 9-12)
152 0% 18 55 1.50
Senior management (Levels 13-15)
34 0% 4 16 0.28
MM and S57 41 0% 4 7 0.00
Total 578 0% 81 302 4.25 0
168 |Audited 2017/18 Annual Report
Disciplinary Action Taken on Cases of Financial Misconduct
Position Nature of Alleged Misconduct and Rand value of any loss to
the municipality
Disciplinary action taken Date Finalised
N/A N/A N/A N/A
0-Jan-00
1-Jan-00 1-Jan-00
0-Jan-00 0-Jan-00
0-Jan-000-Jan-00
0-Jan-00
0-Jan-00
0-Jan-00
0-Jan-00
1-Jan-00
1-Jan-00
1-Jan-00
Lower skilled(Levels 1-2)
Skilled (Levels3-5)
Highly skilledproduction(levels 6-8)
Highly skilledsupervision(levels 9-12)
Seniormanagement(Levels 13-15)
MM and S57
Average Number of Days Sick Leave (excluding IOD)
Number and Period of Suspensions
Position Nature of Alleged Misconduct
Date of Suspension
Details of Disciplinary Action taken or Status of Case and Reasons why
not Finalised
Date Finalised
N/A N/A N/A N/A N/A
169 |Audited 2017/18 Annual Report
4.4 PERFORMANCE REWARDS
In terms of regulation 8 of the Local Government: Municipality Performance Regulations for Municipal
Managers and Managers directly accountable to Municipal Managers.
All Senior Managers appointed in terms of Section 56 of the MSA are on fixed-term performance contracts. All
Senior Managers have signed Performance Agreements. No performance rewards were paid to Section 56
managers.
The individual performance management system has been cascaded down to the second reporting line of
managers and officers reporting to them. Currently no performance bonus system or policy exists to pay
bonus to non-section 56 employees. This will be implemented once the organization achieves the necessary
performance management maturity level.
COMPONENT C: CAPACITATING THE MUNICIPAL WORK FORCE
INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT
Section 68(1) of the MSA states that a municipality must develop its human resource capacity to a level that
enables it to perform its functions and exercise its powers in an economical, effective, efficient and
accountable way. For this purpose the human resource capacity of a Municipality must comply with the Skills
Development Act (SDA), 1998 (Act No. 81 of 1998), and the Skills Development Levies Act, 20 1999 (Act No.
28 of 1999).
One of the key programmes was the implementation of the Human Resources Development Plan wherein
employees and previously disadvantaged persons were trained on acquire skills. A Workplace Skills Plan was
developed and submitted to the Local Government SETA. Capacity building programmes were implemented in
the year for both officials and councilors. Unemployed graduates were taken in as Learners in departments to
assist them with workplace exposure. In line with the Council’s Bursary scheme, a considerable number of
employees were offered bursaries to further enhance themselves.
170 |Audited 2017/18 Annual Report
4.5 SKILLS DEVELOPMENT AND TRAINING
Skills Matrix
Management level
Gender Employees in post as at 30 June
Year 0
Number of skilled employees required and actual as at 30 June Year 0
Learnerships Skills programmes & other short courses
Other forms of training Total
No.
Actual: End of Year -1
Actual: End of Year 0
Year 0 Target
Actual: End
of Year -
1
Actual: End of Year 0
Year 0 Target
Actual: End of Year -1
Actual: End of Year 0
Year 0 Target
Actual: End of Year -1
Actual: End of Year 0
Year 0 Target
MM and s57 Female 3 0 0 1 1 0 12 1 0 4 1 0 0
Male 4 2 0 0 6 0 0 1 0 0 9 0 0
Councillors, Female 28 2 0 0 4 0 12 19 0 4 25 0 0
Male 47 3 0 0 0 0 0 40 0 0 43 0 0
Managers Female 3 0 0 0 2 0 12 0 0 4 2 0 0
Male 13 2 0 0 8 0 0 3 0 0 13 0 0
Technicians and associate professionals*
Female 6 0 0 0 3 0 12 2 0 4 5 0 0
Male 5 0 0 0 5 0 0 1 0 0 6 0 0
Professionals Female 22 0 0 0 0 0 12 2 0 4 2 0 0
Male 13 0 0 0 0 0 0 3 0 0 3 0 0
Elementary Female 31 0 0 0 5 0 12 10 0 4 15 0 0
Male 38 0 0 0 1 0 0 8 0 0 9 0 0
Sub total Female 59 0 0 0 0 0 12 42 0 4 42 0 0
Male 78 0 0 0 0 0 0 56 0 0 56 0 0
Total 152 0 0 0 15 0 0 76 0 0 91 0 0
Total number of trained staff =163
171 |Audited 2017/18 Annual Report
Total number trained for councillors=75
Financial Competency Development: Progress Report*
Description A. Total number of officials employed by municipality (Regulation 14(4)(a) and (c))
B. Total number of officials employed by municipal entities (Regulation 14(4)(a) and (c)
Consolidated: Total of A and B
Consolidated: Competency assessments completed for A and B (Regulation 14(4)(b) and (d))
Consolidated: Total number of officials whose performance agreements comply with Regulation 16 (Regulation 14(4)(f))
Consolidated: Total number of officials that meet prescribed competency levels (Regulation 14(4)(e))
Financial Officials
Accounting officer 1 0 1 0 1 1
Chief financial officer 1 0 1 0 1 1
Senior managers 6 0 5 0 5 5
Any other financial officials 8 0 8 0 0 5
Supply Chain Management Officials
4 0 4 0 0 4
Heads of supply chain management units
0 0 0 0 0 0
Supply chain management senior managers
1 0 0 0 0 0
TOTAL 21 0 21 0 7 16
COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL COMPETENCY REGULATIONS
The municipality over achieved its targets on skills development. There was also an increase in the number of employees who took up and
participated in skills development programs including academic programs. The municipality also make available funding that assisted in the
achievement. What is outstanding as well was the participation of councilors in a Matric program for the first time
172 |Audited 2017/18 Annual Report
COMPONENT D: MANAGING WORKFORCE EXPENDITURE
INTRODUCTION TO WORKFORCE EXPENDITURE
The municipality has ensured that the workforce expenditure is kept within the accepted proportions in relation
to capital expenditure. Grants meant for service delivery are not used for operational expenditure.
4.6 EMPLOYEE EXPENDITURE
WORKFORCE EXPENDITURE TRENDS (R. 000)
Financial year Amount
Year 0 R112 994 309
Year -1 R 111 772 808
Year -2 R 801 972
Year -3 R 56 989 063.95
NUMBER OF EMPLOYEES WHOS SALARIES WERE INCREASED DUE TO THE POSITIONS BEING
UPGRADED
None
DISCLOSURE OF FINANCIAL INTEREST BY EMPLOYEES
All section 56 managers, all Bid Committee members and SCM officials have declared their financial
interest.
173 |Audited 2017/18 Annual Report
CHAPTER 5 – FINANCIAL PERFORMANCE
INTRODUCTION
Chapter 5 contains information regarding financial performance and highlights specific accomplishments.
chapter comprises of three components:
Component A: Statement of Financial Performance
Component B: Spending Against Capital Budget
Component C: Other Financial Matters
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE
INTRODUCTION TO FINANCIAL STATEMENTS
The annual financial statements have been prepared on the accrual basis of accounting and in accordance
with historical cost convention, unless otherwise specified. The annual financial statements have been
prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP),
including any interpretations and directives issued by the Accounting Standards Board in accordance with
Section 122(3) of the Municipal Finance Management Act, (Act No. 56 of 2003). The principle accounting
Occupation Number of employees
Job evaluation level
Remuneration level
Reason for deviation
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
174 |Audited 2017/18 Annual Report
policies adopted in the preparation of the annual financial statements are set out in the annual financial
statements contained in this document. The financial statements have been prepared based on the accounting
policies that the municipality deems to be appropriate for the activities of the municipality and have been
applied consistently in all respects from the previous financial years.
5.1 STATEMENTS OF FINANCIAL PERFORMANCE
COMMENT ON FINANCIAL PERFORMANCE:
The municipality recorded under spending due to amongst thing, delays in SCM processes, slow recruitment
processes on filling of posts, poor spending patterns on internally funded projects.
STATEMENT OF FINANCIAL PERFOMANCE FOR THE PERIOD ENDED-30 JUNE 2018
Revenue Note (s) 2018 2017
Service charges 18 673,224.00 474,527.00
Rental of facilities and equipment 19 3,312,764.00 1,894,531.00
Interest earned (trading) 17 2,621,875.00 82,957.00
Recoveries - 1,495,663.00
Other revenue 21 2,473,876.00 2,287,345.00
Interest earned 22 2,486,447.00 5,111,777.00
Assessment rates 9,693,917.00 4,032,476.00
Received Donantion in kind - 68,934,355.00
Licences and permits 1,293,360.00 1,415,198.00
Grants and subsidies 24 299,118,709.00 296,985,860.00
Fines, penalties and forfeits 2,497,708.00 3,098,393.00
Total Revenue 324,171,880.00 385,813,082.00
Expenditure
Employee related costs 25 (121,884,355.00) (120,917,690.00)
Remuneration of councillors 26 (25,088,557.00) (23,319,930.00)
Depreciation & asset impairment 27 (57,441,881.00) (68,997,678.00)
Finance charges 28 (1,920,007.00) (9,121,966.00)
Deb impairment 29 (3,387,397.00) (458,257.00)
Administrative and other expenses 30 (114,280,535.00) (152,973,686.00)
Total Expenditure (324,002,732.00) (375,789,207.00)
Operating Surplus 169,148.00 10,023,875.00
Profit/(Loss) on disposal of assets - 21,128,869.00
Surplus (deficit) for the year 169,148.00 (11,104,994.00)
175 |Audited 2017/18 Annual Report
5.2 GRANTS
Year -1 Year 0
Description Actual Budget Adjusted Budget Actual
Original Budget
(%)
Adjustment
budget (%)
Grants and Subsidies
National Government
Equitable share 210,060,000 218,025,000 218,025,000 218,025,000 100% 100%
Municipal Infrastructure Grant 65,745,000 61,027,000 58,027,000 58,027,000 95% 100%
Intergrated Electrification Programme 17,000,000 14,000,000 14,000,000 14,000,000 100% 100%
Expanded Public Works Programme 1,144,000 4,236,000 4,236,000 4,236,000 100% 100%
Municipal Finance Management Grant 1,625,000 1,700,000 1,700,000 1,700,000 100% 100%
Services SETA Grant 0 1,399,930 1,399,930 1,399,930 100% 100%
Other government grants 61,860 1,380,779 1,380,779 1,380,779 100% 100%
295,635,860 301,768,709 298,768,709 298,768,709 99% 100%
Provincial Government
Library Grant 350,000 350,000 350,000 350,000 100% 100%
IEC Grant 1,000,000 0 0 0 0% 0%
1,350,000 350,000 350,000 350,000 100% 100%
296,985,860 302,118,709 299,118,709 299,118,709 99% 100%
Year 0 Variance
GRANT PERFOMANCE
176 |Audited 2017/18 Annual Report
5.3 ASSET MANAGEMENT
INTRODUCTION TO ASSET MANAGEMENT
Repair and Maintenance Expenditure: Year 0
5R' 000
Original Budget
Adjustment Budget
Actual Budget
variance
Repairs and Maintenance Expenditure 40 437 577 40 437 577 35 768 606 -11%
COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE: There was a total spending of 88% of the total
budget. This was due to the fact that the municipality initially planned to repair its plant and machinery but after
further analysis and its poor condition, the decision was taken to acquire a new plant and machinery, thus
leading to under expenditure.
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS: T5.4.1-
T5.4.9
177 |Audited 2017/18 Annual Report
3.9
0.6 0.6
–
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2015/16 2016/17 2017/18
Liquidity Ratio
Liquidity Ratio – Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year ) by the municipality’s current liabilities. A higher ratio is better.
Data used from MBRR SA8
178 |Audited 2017/18 Annual Report
4.6
(6.4)
0.7
(8.0)
(6.0)
(4.0)
(2.0)
–
2.0
4.0
6.0
2015/16 2016/17 2017/18
Cost Coverage
Cost Coverage– It explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated
Data used from MBRR SA8
179 |Audited 2017/18 Annual Report
2.2
8.9
1.1
–
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2015/16 2016/17 2017/18
Debt Coverage
Debt Coverage– The number of times debt payments can be accomodated within Operating revenue (excluding grants) . This in turn represents the ease with which debt payments can be accomodated by the municipality
Data used from MBRR SA8
180 |Audited 2017/18 Annual Report
6.6%
0.0%
0.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2015/16 2016/17 2017/18
Capital Charges to Operating Expenditure
Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.
Data used from MBRR SA8
Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.
Data used from MBRR SA8
22.8%26.1%
61.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2015/16 2016/17 2017/18
Employee Costs
Employee cost – Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.
Data used from MBRR SA8
181 |Audited 2017/18 Annual Report
5.4.9 COMMENT ON FINANCIAL RATIOS:
Liquidity Ratio
This ratio provides an indication of the municipality's ability to pay its short term debts in the short-term (viability of
an entity). These ratios focus on current assets (debtors, bank and cash, inventory) and current liabilities (trade
and sundry creditors, provisions, accruals). In the current year, the municipality has dropped from 0.59 to 0.56,
which is a concern. The municipality will have to relook its revenue projections.
Cost coverage
The cost coverage is calculated as available cash plus investments divide by monthly fixed operational
expenditure. The municipal budget reporting regulations table for 2017/18 shows the coverage ratio at 6.4, this
indicates that the municipality had sufficient reserves to meet its fixed monthly operational costs.
Total outstanding service debtors
This ratio measures how much money is owed by the consumers on services provided by the municipality. The
municipality only provides refuse removal. The percentage of 1.0% indicates that the municipality is making steady
progress in addressing the challenges of poor collection rate as there has been improvement in collection of
revenue against the billed amount.
Debt coverage
The municipality has a low debt coverage rate of 1.1, which indicates that it does not generate sufficient own
revenue to cover its own operational costs.
7.0%
4.7%
21.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2015/16 2016/17 2017/18
Repairs & Maintenance
Repairs and Maintenance – This represents the propotion of operating expenditure spent and is calculated by dividing the total repairs and maintenace.
Data used from MBRR SA8
182 |Audited 2017/18 Annual Report
Creditors system efficiency
The municipality is developing systems in place to ensure that the creditors are paid within 30 days on receipt of
valid invoice. This has led to a 90% improvement in the payment rate and the reduction in the creditors balance at
year end.
Capital charges to Operating Expenditure
The rate is low because the municipality did not have capital loans and the interest incurred was on late payment
of creditors.
Employee costs
The rate of 61% is greater than the previous year of 24.8%, because the municipality had many vacant positions
that were budgeted for but that were never filled. There were no vacancies at Senior Management Level, which
became vacant in the current year but were not timeously filled leading to a reduction in the rate.
Repairs and maintenance
The rate of repairs and maintenance has declined due to projected not completed during the year on the
maintenance of access roads.
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET
Capital expenditure relates mainly to construction projects that will have value lasting over many years. Capital
expenditure is funded from grants, borrowings and operating expenditures and surpluses. Component B deals
with capital spending indicating where the funding comes from and whether Municipalities are able to spend the
available funding as planned. In this component it is important to indicate the different sources of funding as well
as how these funds are spend. Highlight the 5 largest projects (see T5.7.1) and indicate what portion of the capital
budget they use. In the introduction briefly refer to these key aspects of capital expenditure (usually relating to new
works and renewal projects) and to Appendices M (relating to the new works and renewal programmes), N
(relating to the full programme of full capital projects, and O (relating to the alignment of projects to wards).
183 |Audited 2017/18 Annual Report
5.5 CAPITAL EXPENDITURE
5.6
5.6SOURCES OF FINANCE
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
5.7 CASH FLOW
Year -1
Actual Original
Budget (OB)
Adjustment
Budget Actual
Adjustment
to OB
Variance (%)
Actual to
OB
Variance
(%)
Source of finance
External loans
Public contributions
and donations
Grants and subsidies 73 122 019.00 77 867 140.00 61 985 800.00 61 985 800.00 20% 0%
Other 95 176 416.77
Total 168 298 435.77 77 867 140.00 61 985 800.00 61 985 800.00 20% 0%
Percentage of finance 0%
External loans 0%
Public contributions
and donations0%
Grants and subsidies 0.43 100 100 100 0% 0%
Other 0 0 0 0 0% 0%
Capital expenditure 0%
Water and sanitation 0%
Electricity 28 236 842.10 14 000 000.00 14 000 000.00 14 000 000.00 0% 0%
Housing - - 0% 0%
Roads and storm water 67 129 405.23 37 820 517.00 37 820 517.00 37 820 517.00 0% -26%
Other 72 932 188.44 26 046 623.00 10 165 283.00 10 165 283.00 61% -26%
Total 168 298 435.77 77 867 140.00 61 985 800.00 61 985 800.00 20% -0.52
Percentage of expenditure 0% -1.04
Water and sanitation 0% -2.08
Electricity 0.17 18 23 23 -26% -4.16
Housing - 0 0 - 0% -8.06
Roads and storm water 0.4 49 61 61 -26% -15.86
Other 0.43 33 16 16 51% -31.20
R' 000
Details
Year 0
Capital Expenditure - Funding Sources: Year -1 to Year 0
-
50 000 000
100 000 000
150 000 000
200 000 000
250 000 000
300 000 000
350 000 000
400 000 000
450 000 000
R m
illio
n
Capital Expenditure: Year 0
Capital Expenditure
Operating Expenditure
184 |Audited 2017/18 Annual Report
INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS
The municipality’s consistently strong liquidity profile over the past few years reflects a viable administrative
system geared towards fiscal discipline despite challenges associated with the collection of revenues. The
municipality prepares highly informative and comprehensive annual financial statements, including a balance
sheet that is independently audited by the Auditor General. The municipality received an unqualified audit
opinion for the financial year ended 30 June 2017. There were no material qualifications that affect the cash flow
of the municipality.
5.8 BORROWING AND INVESTMENTS
INTRODUCTION TO BORROWING AND INVESTMENTS
COMMENT ON BORROWING AND INVESTMENTS:
The municipality did not have borrowings in the 2017/18 financial year.
Investment profile
The municipality has short term investments with different banks. This is under cash and cash equivalents under
the AFS note 5.
Municipal and Entity Investments
R' 000
Investment* type
Year -2 Year -1 Year 0
Actual Actual Actual
Municipality
Securities - National Government
Listed Corporate Bonds
Deposits - Bank 12 228 880 5 529 241 6 069 682
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Municipal Bonds
Other
Municipality sub-total 0 0 0
Municipal Entities
Securities - National Government
Listed Corporate Bonds
Deposits - Bank
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Other
Entities sub-total 0 0 0
Consolidated total: 0 0 0
185 |Audited 2017/18 Annual Report
T 5.10.4
1.11 PUBLIC PRIVATE PARTNERSHIP
The municipality does not have any Public Private Partnerships during the 2017/18 financial year
COMPONENT D: OTHER FINANCIAL MATTERS
5.9 SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Section 3(1)(b) and (c) of the SCM Regulations states that the accounting officer of a municipality must at least
annually review the implementation of the SCM policy and when necessary submit proposal for the amendment of
the policy to council.
Section 117 of the MFMA states that: “No councilor of any municipality may be a member of a municipal bid
committee or any other committee evaluating or approving tenders, quotations, contracts or other bids, not attend
any such meeting as an observer.” The Accounting Officer established a committee system that is consistent with
the MFMA and Municipal SCM Regulations for competitive bids consisting of:
- A bid specification committee
- A bid evaluation committee
- A bid adjudication committee
Chapter 6 of the Municipal Regulations on Minimum Competency Levels states that: “The accounting officer and
any other official of a municipal entity involved in the implementation of the SCM Policy of the municipal entity must
generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the
functions and power in respect of Supply Chain Management.” The regulations indicate the minimum competency
levels for Heads and Managers in Supply Chain Management and Supply Chain Management Practitioners.
Supply Chain Management is centralized and situated in the Budget and Treasury Department with 5 permanent
staff members, 1 of them has completed the minimum competency requirements, whilst 4 are in the final stages
of meeting these competencies
5.10 GRAP COMPLIANCE
GRAP COMPLIANCE
GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules by which
municipalities are required to maintain their financial accounts. Successful GRAP compliance will ensure that
municipal accounts are comparable and more informative for the municipality. It will also ensure that the
municipality is more accountable to its citizens and other stakeholders. Information on GRAP compliance is needed
to enable National Treasury to assess the pace of progress and consider the implications.
186 |Audited 2017/18 Annual Report
The municipality is yet to achieve full compliance with GRAP but notable strides have been made as captured in
the Audit Action Plan. Material misstatements were identified by the Auditor-General that were subsequently
corrected, leading to the Annual Financial Statements receiving an emphasis of matter in the audit report.
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS
INTRODUCTION
Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes the auditing and
reporting on the accounts, financial statements and financial management of all municipalities. MSA S45 states
that the results of performance measurement… must be audited annually 999by the Auditor-General.
COMPONENT A: AUDITOR GENERAL OPINION OF FINANCIAL STATEMENT Year -1 2016/17
OPINION
I have audited the financial statements of the Mbhashe Local Municipality set out on pages … to …,
which comprise the statement of financial position as at 30 June 2017, and the statement of
financial performance, statement of changes in net assets, and cash flow statement and of the
statement of comparison of budget and actual amounts for the year then ended, as well as the
notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the financial statements present fairly, in all material respects, the financial position of
the Mbhashe Local Municipality as at 30 June 2017, and its financial performance and cash flows
for the year then ended in accordance with South African Standards of Generally =Recognised
Accounting Practise (SA standards of GRAP) and the requirements of the Municipal Finance
Management Act of South Africa, 2003(Act No. 56 of 2003) (MFMA) and the Division of Revenue
Act of South Africa, 2015.
REPORT OF THE AUDITOR-GENERAL TO EASTERN CAPE PROVINCIAL LEGISLATURE
AND THE COUNCIL ON MBHASHE LOCAL MUNICIPALITY
AG REPORT ON SERVICE DELIVERY PERFORMANCE YEAR – 1 2016/17
OPINION
I have audited the financial statements of the Mbhashe Local Municipality set out on pages … to …,
which comprise the statement of financial position as at 30 June 2017, and the statement of
financial performance, statement of changes in net assets, and cash flow statement and of the
statement of comparison of budget and actual amounts for the year then ended, as well as the
notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the financial statements present fairly, in all material respects, the financial position of
the Mbhashe Local Municipality as at 30 June 2017, and its financial performance and cash flows
for the year then ended in accordance with South African Standards of Generally Recognised
Accounting Practise (SA standards of GRAP) and the requirements of the Municipal Finance
Management Act of South Africa, 2003(Act No. 56 of 2003) (MFMA) and the Division of Revenue
Act of South Africa, 2015.
187 |Audited 2017/18 Annual Report
BASIS FOR OPINION
I conducted my audit in accordance with the International Standards on Auditing (ISAs). My
responsibilities under those standards are further described in the auditor-general’s responsibilities
for the audit of the financial statements section of my report.
I am independent of the municipality in accordance with the International Ethics Standards Board for
Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical
requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical
responsibilities in accordance with these requirements and the IESBA code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.
EMPHASIS OF MATTERS
I draw attention to the matters below. My opinion is not modified in respect of these matters.
Restatement of corresponding figures
As disclosed in note 43 to the financial statements, the corresponding figures for 30 June 2016 have
been restated as a result of an error in the financial statements of the municipality at, and for the
year ended, 30 June 2017.
Irregular expenditure
As disclosed in note 31 to the financial statements, irregular expenditure to the amount of R536 million
has accumulated over a number of years. Irregular expenditure of R134 million incurred during the
year.
Unauthorised expenditure
As disclosed in note 29 to the financial statements, unauthorised expenditure to the amount of R103
million was incurred on overspending of public safety, housing and finance and administration
votes.
Fruitless and wasteful expenditure
As disclosed in note 30 to the financial statements, fruitless and wasteful expenditure to the amount of
R6, 6 million has been accumulating for the past four years.
OTHER MATTER
I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited disclosure notes
In terms of section 125(2)-(e) of the MFMA the municipality is required to disclose particulars of non-
compliance with the MFMA in the financial statements. This disclosure requirement did not form
part of the audit of the financial statements and accordingly I do not express an opinion thereon.
RESPONSIBILITIES OF THE ACCOUNTING OFFICER FOR THE FINANCIAL STATEMENTS
188 |Audited 2017/18 Annual Report
The accounting officer is responsible for the preparation and fair presentation of the financial
statements in accordance with SA standards of GRAP and the requirements of the MFMA and
DoRA and for such internal control as the accounting officer determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the accounting officer is responsible for assessing the Mbhashe
Local Municipality’s ability to continue as a going concern, disclosing, as applicable, matters
relating to going concern and using the going concern basis of accounting unless the accounting
officer either intends to liquidate the municipality or to cease operations, or has no realistic
alternative but to do so.
AUDITOR-GENERAL’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL
STATEMENTS
My objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes my opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of my responsibilities for the audit of the financial statements is included in the
annexure to the auditor’s report.
REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT
INTRODUCTION AND SCOPE
In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the
general notice issued in terms thereof I have a responsibility to report material findings on the
reported performance information against predetermined objectives for selected development
priorities presented in the annual performance report. I performed procedures to identify findings
but not to gather evidence to express assurance.
My procedures address the reported performance information, which must be based on the approved
performance planning documents of the municipality. I have not evaluated the completeness and
appropriateness of the performance indicators included in the planning documents. My procedures
also did not extend to any disclosures or assertions relating to planned performance strategies and
information in respect of future periods that may be included as part of the reported performance
information. Accordingly, my findings do not extend to these matters.
I evaluated the usefulness and reliability of the reported performance information in accordance with
the criteria developed from the performance management and reporting framework, as defined in
the general notice, for the following selected development priorities presented in the annual
performance report of the municipality for the year ended 30 June 2017:
189 |Audited 2017/18 Annual Report
Development priorities Pages in the annual
performance report
KPA 2 – Basic service delivery and infrastructure x – x
KPA 3 – Local economic development x – x
I performed procedures to determine whether the reported performance information was properly
presented and whether performance was consistent with the approved performance planning
documents. I performed further procedures to determine whether the indicators and related targets
were measurable and relevant, and assessed the reliability of the reported performance
information to determine whether it was valid, accurate and complete.
The material findings in respect of the usefulness and reliability of the selected development priorities
are as follows:
190 |Audited 2017/18 Annual Report
KPA 2 – BASIC SERVICE DELIVERY AND INFRASTRUCTURE
Usefulness
Performance indicators are not well-defined
The evidence and method of calculation for the achievement of the following planned indicators were
not clearly defined, as required by the Framework for Managing Programme Performance
Information (FMPPI).
o SD 2.2 Number of transport for a held
o SD 2.3 Number of programmes implemented
o SD 1.9 Number of studies conducted
o SD 1.12 Number of programmes organised
o SD 3.4 Percentage of communal cemeteries fenced
o SD 3.5 Number of ECDCs supported
Reliability
Various indicators
The reported achievements for the targets listed below were misstated, as the evidence provided did
not agree with the reported achievements as follows:
Performance indicator Planned target
Reported achievement
Audited value
SD 1.7 Number of villages covered with rehabilitation of damaged land
5 5 31
SD 2.5.1 Number of improved street lights 36 3 1
SD 3.5 Number of ECDCs supported 60 77 2
SD 3.10 Number of gateways maintained 4 3 2
SD 4.1 Number of kilometers of road constructed 80 154.4 93.5
Various indicators
I was unable to obtain sufficient appropriate audit evidence for the reported achievement of the
indicators listed as per table below. This was due to limitations placed on the scope of my work
and inadequate record keeping system at the municipality. I was unable to confirm the reported
achievement by alternative means. Consequently, I was unable to determine whether any
adjustments were required to the reported achievement.
Performance indicator Planned target
Reported achievement
Audited value
SD 2.4 - % disaster incidents assisted with disaster relief material
40% 100% 0
SD 2.5 Number of adequate street lights 610 633 0
191 |Audited 2017/18 Annual Report
SD 4.2- Number of kilometers of roads maintained 300 691.2 0
KPA 3: LOCAL ECONOMIC DEVELOPMENT
Usefulness
Performance indicators are not well-defined
The evidence and method of calculation for the achievement of the following planned indicators were
not clearly defined, as required by the Framework for Managing Programme Performance
Information (FMPPI).
o LED 1.4 Number of informal traders supported for growth and development
o LDE 1.5 Number of SMMEs supported for growth and development
o LED 1.6 Number of Cooperatives supported
o LED 3.1 Number of support programmes implemented
o LED 4.2 Number of ocean marine initiative supported
o LED 4.4 Number of events hosted
o LED 4.7 Number of destinations supported
Reported indicators not consistent or complete when compared with planned indicators
The following indicators as reported were not consistent with the indicators approved in the integrated
development plan. This is not in line with the requirements of section 41 (c) of the MSA.
Performance indicator per SDP/IDP Reported Performance Indicator
LED 2.1 Number of commodity groups assisted with
seedlings and fruit trees LED 2.1 Number of commodity groups assisted
LED 2.2 Number of villages assisted with maize production LED 2.2 Number of villages assisted
Reliability
Various indicators
The reported achievements for the targets listed below were misstated, as the evidence provided did
not agree with the reported achievements as follows:
Performance indicator Planned target
Reported achievement
Audited value
LED 1.4 Number of informal traders supported for growth and development
120 120 27
192 |Audited 2017/18 Annual Report
LED 1.6 Number of Cooperatives supported 8 16 10
LED 2.2 Number of villages assisted 30 30 44
LED 2.4 Number of farming projects assisted with equipment and/or inputs
10 10 11
LED 2.7 Number of village farming associations assisted with stock remedy and feed
30 32 22
LED 4.7 Number of destinations supported 1 1 4
27. I was unable to obtain sufficient appropriate audit evidence for the reported achievement of the
indicators listed as per table below. This was due to limitations placed on the scope of my work
and inadequate record keeping system at the municipality. I was unable to confirm the reported
achievement by alternative means. Consequently, I was unable to determine whether any
adjustments were required to the reported achievement.
Performance indicator Planned target
Reported achievement
Audited value
LED 2.5 Number of dipping tanks renovated 5 5 0
LED 2.6 Number of shearing sheds built or renovated 5 5 0
LED 4.6 No. of craft centers renovated 3 3 0
Other matters
I draw attention to the matters below.
ACHIEVEMENT OF PLANNED TARGETS
Refer to the annual performance report on page(s) x to x; x to x for information on the achievement of
planned targets for the year and explanations provided for the under and overachievement of a
significant number of targets. This information should be considered in the context of the qualified
and adverse opinions expressed on the usefulness and reliability of the reported performance
information in paragraph(s) x; x; x of this report.
Adjustment of material misstatements
I identified material misstatements in the annual performance report submitted for auditing. These
material misstatements were on the reported performance information of KPA 2: Basic service
delivery and infrastructure and KPA 3: Local economic development. Those that were not
corrected are included in the basis for opinion paragraphs.
REPORT ON AUDIT OF COMPLIANCE WITH LEGISLATION
INTRODUCTION AND SCOPE
In accordance with the PAA and the general notice issued in terms thereof I have a responsibility to
report material findings on the compliance of the municipality with specific matters in key
legislation. I performed procedures to identify findings but not to gather evidence to express
assurance.
193 |Audited 2017/18 Annual Report
The material findings in respect of the compliance criteria for the applicable subject matters are as
follows:
Procurement and Contract Management
The performance of some of the contractors or providers was not monitored on a monthly basis, as
required by section 116(2)-(b) of the MFMA.
The contract performance and monitoring measures and methods were insufficient to ensure effective
contract management, in contravention of section 116(2)-(c) of the MFMA.
Competitive bids were adjudicated by a bid adjudication committee that was not composed in
accordance with SCM regulation 29(2).
Annual Financial Statements and Annual Report
The financial statements submitted for auditing were not prepared in all material respects in
accordance with the requirements of section 122 of the MFMA. Material misstatements identified
by the auditors in the submitted financial statements were subsequently corrected and the
supporting records were provided subsequently, which resulted in the financial statements
receiving an unqualified opinion.
The annual performance report for the year under review did not include the performance of each
external services provider, and a comparison with the previous financial year, as required by
section 46 (1)-(a) and (b) of the MSA.
Budgets
Reasonable steps were not taken to prevent unauthorised expenditure amounting to R14 263 386, as
disclosed in note 29 to the annual financial statements, in contravention of section 62(1)-(d) of the
MFMA.
Consequence Management
Fruitless and wasteful expenditure incurred by the municipality in the previous years was not
investigated to determine if any person is liable for the expenditure, as required by section 32(2)-
(b) of the Municipal Finance Management Act.
Unauthorised expenditure amounting to R88 364 623 incurred by the municipality in the previous years
was not investigated to determine if any person is liable for the expenditure, as required by section
32(2)-(a) of the Municipal Finance Management Act.
Expenditure Management
Effective steps were not taken to prevent irregular expenditure amounting to R32, 2 million as
disclosed in note 31 to the annual financial statements, as required by section 62(1)-(d) of the
MFMA.
194 |Audited 2017/18 Annual Report
Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R200 113, as disclosed in note 30 to the annual financial statements, in contravention of section 62(1)-(d) of the MFMA.
195 |Audited 2017/18 Annual Report
Revenue management
Interest was not charged on all accounts in arrears, as required by section 64(2)-(g) of the MFMA.
OTHER INFORMATION
The Mbhashe Local Municipality’s accounting officer is responsible for the other information. The other
information comprises the information included in the annual report. The other information does not
include the financial statements, the auditor’s report thereon and those selected development
priorities presented in the annual performance report that have been specifically reported on in the
auditor’s report.
My opinion on the financial statements and findings on the reported performance information and
compliance with legislation do not cover the other information and I do not express an audit opinion
or any form of assurance conclusion thereon.
In connection with my audit, my responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements and
the selected development priorities presented in the annual performance report, or my knowledge
obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have
performed on the other information obtained prior to the date of this auditor’s report, I conclude that
there is a material misstatement of this other information, I am required to report that fact.
INTERNAL CONTROL DEFICIENCIES
I considered internal control relevant to my audit of the financial statements, reported performance
information and compliance with applicable legislation; however, my objective was not to express
any form of assurance thereon. The matters reported below are limited to the significant internal
control deficiencies that resulted in the annual performance report and the findings on compliance
with legislation included in this report.
There was a lack of oversight over the processes to ensure document management systems were in
place to support the achievement of pre-determined objectives.
196 |Audited 2017/18 Annual Report
The municipality did not have an effective records management system in place to reliably account for
the reporting on predetermined objectives. In addition there was inadequate daily and monthly
reviews performed to ensure that compliance with laws and regulations was achieved.
East London
30 November 2017
197 |Audited 2017/18 Annual Report
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (2017/18)
Opinion
1. I have audited the financial statements of the Mbhashe Local Municipality set out on pages ...
to ... , which comprises the statement of financial position as at 30 June 2018, the statement of
financial performance, statement of changes in net assets, cash flow statement and statement
of comparison of budget and actual amounts for the year then ended, as well as the notes to
the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial
position of the Mbhashe Local Municipality as at 30 June 2018, and its financial performance
and cash flows for the year then ended in accordance with South African Standards of
Generally Recognised Accounting Practice (SA standards of GRAP) and the requirements of
the Municipal Finance Management Act of South Africa (Act No. 56 of 2003) (MFMA) and the
Division of Revenue Act of South Africa, 2017 (Act No. 3 of 2017) (Dora).
6.2 : AUDITOR-GENERAL REPORT 0 (2017/18)
Report of the auditor-general to Eastern Cape Provincial Legislature and
council of Mbhashe Local Municipality
Opinion
1. I have audited the financial statements of the Mbhashe Local Municipality set out on pages ...
to ... , which comprises the statement of financial position as at 30 June 2018, the statement of
financial performance, statement of changes in net assets, cash flow statement and statement
of comparison of budget and actual amounts for the year then ended, as well as the notes to
the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial
position of the Mbhashe Local Municipality as at 30 June 2018, and its financial performance
and cash flows for the year then ended in accordance with South African Standards of
Generally Recognised Accounting Practice (SA standards of GRAP) and the requirements of
the Municipal Finance Management Act of South Africa (Act No. 56 of 2003) (MFMA) and the
Division of Revenue Act of South Africa, 2017 (Act No. 3 of 2017) (Dora).
Basis for the opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My
responsibilities under those standards are further described in the auditor-general's
responsibilities for the audit of the financial statements section of this auditor's report.
198 |Audited 2017/18 Annual Report
4. I am independent of the municipality in accordance with the International Ethics Standards
Board for Accountants’ Code of ethics for professional accountants (IESBA code) and the
ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other
ethical responsibilities in accordance with these requirements and the IESBA code.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my opinion.
Emphasis of matters
6. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Restatement of corresponding figures
7. As disclosed in note 37 to the financial statements, the corresponding figures for 30 June 2017
have been restated as a result of an error in the financial statements of the municipality at, and
for the year ended, 30 June 2018.
Impairment loss - trade debtors
8. As disclosed in note 11 to the financial statements, material impairments of R21,2 million
(2017: R17,8 million) were incurred as a result of a provision of impairment of irrecoverable
trade and other receivables from exchange and non-exchange transactions.
Irregular expenditure
9. As disclosed in note 41 to the financial statements, the municipality incurred irregular
expenditure of R137 million (2017: R134,3 million) as a result of non-compliance with
procurement requirements.
Other matters
10. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited disclosure notes
11. In terms of section 125(2)(e) of the MFMA the municipality is required to disclose particulars of
non-compliance with the MFMA in the financial statements. This disclosure requirement did not form
part of the audit
Responsibilities of accounting officer for the financial statements
12. The accounting officer is responsible for the preparation and fair presentation of the financial
statements in accordance with SA standards of GRAP and the requirements of the MFMA and
Dora, and for such internal control as the accounting officer determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
199 |Audited 2017/18 Annual Report
13. In preparing the financial statements, the accounting officer is responsible for assessing the
municipality’s ability to continue as a going concern, disclosing, as applicable, matters relating to
going concern and using the going concern basis of accounting unless the appropriate
governance structure either intends to liquidate the municipality or to cease operations, or has
no realistic alternative but to do so.
Auditor-general's responsibilities for the audit of the financial statements
14. My objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with the ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
15. A further description of my responsibilities for the audit of the financial statements is included in
the annexure to this auditor's report.
I Report on the audit of the annual performance report
Introduction and scope
16. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and
the general notice issued in terms thereof, I have a responsibility to report material findings on
the reported performance information against predetermined objectives for selected
development priorities presented in the annual performance report. I performed procedures to
identify findings but not to gather evidence to express assurance.
17. My procedures address the reported performance information, which must be based on the
approved performance planning documents of the municipality. I have not evaluated the
completeness and appropriateness of the performance indicators included in the planning
documents. My procedures also did not extend to any disclosures or assertions relating to
planned performance strategies and information in respect of future periods that may be
included as part of the reported performance information. Accordingly, my findings do not
extend to these matters.
18. I evaluated the usefulness and reliability of the reported performance information in accordance
with the criteria developed from the performance management and reporting framework, as
defined in the general notice, for the following selected programmes presented in the annual
performance report of the municipality for the year ended 30 June 2018.
200 |Audited 2017/18 Annual Report
Pages in the annual performance report
KPA 2: basic services and infrastructure development x-x
KPA3: local economic development x-x
19. I performed procedures to determine whether the reported performance information was properly
presented and whether performance was consistent with the approved performance planning
documents. I performed further procedures to determine whether the indicators and related
targets were measurable and relevant, and assessed the reliability of the reported performance
information to determine whether it was valid, accurate and complete.
20. The material findings in respect of the usefulness and reliability of KPA2: basic services and infrastructure development and reliability of KPA3: local economic
KPA 2 - basic services and infrastructure development
Reliability of reported performance
Various indicators
21. I was unable to obtain sufficient appropriate audit evidence for the reported achievement of
targets listed below. This was due to limitations placed on the scope of my work. I was unable to
confirm the reported achievement by alternative means. Consequently, I was unable to determine
whether any adjustments were required to the achievement of the reported targets listed below as
reported in the annual performance report.
Indicator Performance target
Reported achievement
Audited value
SD1.5 Number of surface roads maintained
11km 11km 0
SD1.9 Number of households provided with solar energy
1000 2948 0
SD2.1 Number of households serviced
60124 60124 0
SD6.1 Number of informal settlements with full services
1 1 0
201 |Audited 2017/18 Annual Report
22. The reported achievement in the annual performance report did not agree to the
supporting evidence provided for the indicators listed below. The supporting evidence
provided indicated that the achievement of this indicator was as follows:
Indicator Performance target
Reported achievement
Audited value
SD1.1Number of km of
gravel roads constructed
30km 30km 24.6km
SD1.2 Number of km of
gravel roads maintained
300km 315.1km 354.71km
SD1.4 Number of storm
water facilities upgraded
10 10 14
SD1.6 Number of square
meters of paved side walks
10 000m2 8 361.50m2 942m2
SD1.8 Number of
households provided with
grid electricity
560 808 964
SD1.12 Number of street
lights maintained
610 669 2585
SD2.4 Number of roads
safety features implemented
5 5 1
Usefulness
SD1 .11 Number of street lights upgraded
Reported achievements not consistent with the planned and reported target
23. The reported achievement of 35 street poles planted for the indicator SD1 .11 number of
street lights upgraded is not consistent with the planned target for this indicator, which was
20 street lights upgraded.
Target is not specific
SDI 1 .5 Number of surface roads maintained
24. The planned target of 11 kilometers of surface roads maintained for the indicator SD 1.5 number
of surface roads maintained is not specific in that it does not clearly identify the nature and required
level of performance for the indicator.
SD1.7 .2 installation of culverts and bridge approaches complete
25. The planned target of installation of culverts and bridge approaches complete for the indicator SD
1. 7 .2 installation of culverts and bridge approaches complete is not specific in that it does not clearly
identify the nature and required level of performance for the indicator.
KPA 3 - local economic development
Reliability of reported performance - various indicators
202 |Audited 2017/18 Annual Report
26. The reported achievement in the annual performance report did not agree to the supporting
evidence provided for the indicators listed below. I was also unable to obtain sufficient appropriate audit
evidence in some instances. The supporting evidence provided indicated that the achievements of
these indicators were as follows:
Indicator
Performance Reported
Achievement
Audited value target
LED 1.3 Number of village
associations assisted with maize 40 41 30
production inputs.
LED 3.1 Number of people employed
Through EPWP 1079 1500
1851
LED 5.2 Number of SMMEs supported 8 7 6
Other matters
27. I draw attention to the matters below.
Achievement of planned targets
28. Refer to the annual performance report on pages ... to ... for information on the achievement
of planned targets for the year. This information should be considered in the context of the
material findings on the usefulness and reliability of the reported performance information in
paragraphs 21 to 26 of this report.
Adjustment of material misstatements
29. We identified material misstatements in the annual performance report submitted for auditing.
These material misstatements were on the reported performance information of KPA2: service
delivery and infrastructure development and KPA3: local economic development. As
management subsequent ly corrected only some of the misstatements, I raised material findings
on the usefulness and reliability of the reported performance information. Those that were not
corrected are reported above.
203 |Audited 2017/18 Annual Report
I Report on the audit of compliance with legislation
Introduction and scope
30. In accordance with the PAA and the general notice issued in terms thereof, I have a
responsibility to report material findings on the compliance of the municipality with specific
matters in key legislation. I performed procedures to identify findings but not to gather
evidence to express assurance.
31. The material findings on compliance with specific matters in key legislations are as follows:
Strategic planning and performance
32. The performance management system and related controls were not maintained or were
inadequate as it did not describe how the performance planning, monitoring, measurement,
review, reporting and improvement processes should be conducted and organised and
managed, as required by municipal planning and performance management reg 7(1 )
Annual Financial Statements and Annual Report
33. The financial statements submitted for auditing were not prepared in all material respects in
accordance with the requirements of section 122( 1) of the MFMA. Material misstatements of
assets, disclosure, expenditure and employee costs items identified by the auditors in the
submitted financial statements were subsequently corrected, resulting in the financial
statements receiving an unqualified audit opinion.
Expenditure management
34. Money owed by the municipality was not always paid within 30 days, as required by section
65(2)(e) of the MFMA
35. Reasonable steps were not taken to prevent irregular expenditure of R136,5 million as
disclosed in note 41 to the annual financial statements, as required by section 62( 1 )(d) of the
MFMA.
36. Reasonable steps were not taken to prevent fruitless and wasteful expenditure of R 190 530 as
disclosed in note 40 to the annual financial statements, in contravention of section 62(1 )(d) of
the MFMA.
Procurement and contract management
37. Competitive bids were adjudicated by a bid adjudication committee that was not composed in
accordance with SCM regulation 29(2). Similar non-compliance was also reported in the prior
year.
Consequence Management
204 |Audited 2017/18 Annual Report
38. All unauthorised expenditure amounting to R102,6 million incurred by the municipality in the
previous years was not investigated to determine if any person is liable for the expenditure, as
required by section 32(2)(a) of the MFMA.
39. All fruitless and wasteful expenditure incurred by the municipality was not investigated to
determine if any person is liable for the expenditure, as required by section 32(2)(b) of the MFMA
HR management
40. Job descriptions were not established for some posts in which appointments were made, as
required by section 66(1)(b) of the MSA.
j Other information
41. The accounting officer is responsible for the other information. The other information comprises
the information included in the annual report which includes audit committee’s report. The other
information does not include the financial statements, the auditor's report and those selected
development priorities presented in the annual performance report that have been specifically
reported in the auditor's report.
42. Our opinion on the financial statements and findings on the reported performance information
and compliance with legislation do not cover the other information and we do not express an
audit opinion or any form of assurance conclusion thereon.
43. In connection with our audit, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements
and the selected development priorities presented in the annual performance report, or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
44. We did not receive the other information prior to the date of this auditor's report. When we do
receive and read this information, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance and request that the
other information be corrected. If the other information is not corrected, we may have to retract
this auditor's report and re-issue an amended report as appropriate. However, if it is corrected
this will not be necessary
Internal control deficiencies
45. I considered internal control relevant to my audit of the financial statements, reported
performance material and compliance with applicable legislation; however, my objective was
not to express any form of assurance on it. The matters reported below are limited to the
205 |Audited 2017/18 Annual Report
significant internal control deficiencies that resulted in, the findings on the annual performance
report and the findings on compliance with legislation, included in this report.
46. The leadership did not take full ownership of the general control environment and did not insist
on daily disciplines to ensure efficiency and effectiveness in financial management, service
delivery execution and compliance with laws and regulations. Consequently, the correct tone
was not set to ensure that officials are held accountable for their actions through a
consequence management programme.
47. In addition, the municipality did not fully implement and monitor the audit action plan and, as a
result, numerous internal control deficiencies identified in the previous year recurred in the
current year.
48. The municipality did not have an effective records management system in place to reliably
account for the reporting on financial and performance information. In addition, there was no
implementation of monthly controls over daily and monthly reconciliations, as well as
inadequate review and monitoring of compliance with laws and regulations.
49. The lack of daily, weekly and monthly financial disciplines and monitoring throughout the
financial year resulted in a large number of reconciliations, journals and corrections being
performed after year-end. In addition, leadership did not ensure that the financial statements
agreed to supporting documentation prior to its submission for audit.
50. The internal audit unit was not effective in its review of internal controls and compliance with
laws and regulations. This was largely as a result of the lack of co-operation from management
and capacity shortages, in terms of skills and resources in the unit.
51. The impaired functioning of the internal audit unit impacted the effectiveness of the audit
committee.
East London
30 November 2018
AUDITOR-GENERAL
SOUTH AFRICA
Auditing to build public confidence
206 |Audited 2017/18 Annual Report
Annexure - Auditor-general’s responsibility for the audit1
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and
maintain professional scepticism throughout my audit of the financial statements, and the
procedures performed on reported performance information for selected programmes and on
the 's compliance with respect to the selected subject matters.
Financial statements
2. In addition to my responsibility for the audit of the financial statements as described in this
auditor’s report, I also:
• identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the municipalities' internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by, which constitutes the accounting
officer
• conclude on the appropriateness of the accounting officer's use of the going concern basis
of accounting in the preparation of the financial statements. I also conclude, based on the
audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Mbhashe Local Municipality's ability to
continue as a going concern. If I conclude that a material uncertainty exists, I am required
to draw attention in my auditor's report to the related disclosures in the financial
statements about the material uncertainty or, if such disclosures are inadequate, to modify
the opinion on the financial statements. My conclusions are based on the information
available to me at the date of this auditor's report. However, future events or conditions
may cause a municipality to cease continuing as a going concern
• evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation
• obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the group to express an opinion on the financial
207 |Audited 2017/18 Annual Report
statements. I am responsible for the direction, supervision and performance of the group
audit. I remain solely responsible for my audit opinion
Communication with those charged with governance
3. I communicate with the accounting officer regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that I identify during my audit.
4. I also confirm to the accounting officer that I have complied with relevant ethical requirements
regarding independence, and communicate all relationships and other matters that may
reasonably be thought to have a bearing on my independence and, where applicable, related
safeguards
208 |Audited 2017/18 Annual Report
COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES
Section 71 of the MFMA requires municipalities to return a series of financial performance data to the National
Treasury at specified intervals throughout the year. The CFO states that these data set have been returned
according to the reporting requirements.
Signed (CFO)………………………………………………………………………Date
GLOSSARY
Accessibility
indicators
Explore whether the intended beneficiaries are able to access services or
outputs.
Accountability
documents
Documents used by executive authorities to give “full and regular” reports on
the matters under their control to Parliament and provincial legislatures as
prescribed by the Constitution. This includes plans, budgets, in-year and
Annual Reports.
Activities The processes or actions that use a range of inputs to produce the desired
outputs and ultimately outcomes. In essence, activities describe "what we do".
Adequacy indicators The quantity of input or output relative to the need or demand.
Annual Report A report to be prepared and submitted annually based on the regulations set
out in Section 121 of the Municipal Finance Management Act. Such a report
must include annual financial statements as submitted to and approved by the
Auditor-General.
Approved Budget The annual financial statements of a municipality as audited by the Auditor
General and approved by council or a provincial or national executive.
Baseline Current level of performance that a municipality aims to improve when setting
performance targets. The baseline relates to the level of performance recorded
in a year prior to the planning period.
Basic municipal
service
A municipal service that is necessary to ensure an acceptable and reasonable
quality of life to citizens within that particular area. If not provided it may
endanger the public health and safety or the environment.
Budget year The financial year for which an annual budget is to be approved – means a
year ending on 30 June.
Cost indicators The overall cost or expenditure of producing a specified quantity of outputs.
209 |Audited 2017/18 Annual Report
Distribution
indicators
The distribution of capacity to deliver services.
Financial
Statements
Includes at least a statement of financial position, statement of financial
performance, cash-flow statement, notes to these statements and any other
statements that may be prescribed.
General Key
performance
indicators
After consultation with MECs for local government, the Minister may prescribe
general key performance indicators that are appropriate and applicable to local
government generally.
Impact The results of achieving specific outcomes, such as reducing poverty and
creating jobs.
Inputs All the resources that contribute to the production and delivery of outputs.
Inputs are "what we use to do the work". They include finances, personnel,
equipment and buildings.
Integrated
Development Plan
(IDP)
Set out municipal goals and development plans.
National Key
performance areas
• Service delivery & infrastructure
• Economic development
• Municipal transformation and institutional development
• Financial viability and management
• Good governance and community participation
Outcomes The medium-term results for specific beneficiaries that are the consequence of
achieving specific outputs. Outcomes should relate clearly to an institution's
strategic goals and objectives set out in its plans. Outcomes are "what we wish
to achieve".
Outputs The final products, or goods and services produced for delivery. Outputs may
be defined as "what we produce or deliver". An output is a concrete
achievement (i.e. a product such as a passport, an action such as a
presentation or immunization, or a service such as processing an application)
that contributes to the achievement of a Key Result Area.
Performance
Indicator
Indicators should be specified to measure performance in relation to input,
activities, outputs, outcomes and impacts. An indicator is a type of information
used to gauge the extent to
which an output has been achieved (policy developed, presentation delivered,
service rendered)
210 |Audited 2017/18 Annual Report
Performance
Information
Generic term for non-financial information about municipal services and
activities. Can also be used interchangeably with performance measure.
Performance
Standards:
The minimum acceptable level of performance or the level of performance that
is generally accepted. Standards are informed by legislative requirements and
service-level agreements. Performance standards are mutually agreed criteria
to describe how well work must be done in terms of quantity and/or quality and
timeliness, to clarify the outputs and related activities of a job by describing
what the required result should be. In this EPMDS performance standards are
divided into indicators and the time factor.
Performance
Targets:
The level of performance that municipalities and its employees strive to
achieve. Performance Targets relate to current baselines and express a
specific level of performance that a municipality aims to achieve within a given
time period.
Service Delivery
Budget
Implementation Plan
Detailed plan approved by the mayor for implementing the municipality’s
delivery of services; including projections of the revenue collected and
operational and capital expenditure by vote for each month. Service delivery
targets and performance indicators must also be included.
Vote: One of the main segments into which a budget of a municipality is divided for
appropriation of money for the different departments or functional areas of the
municipality. The Vote specifies the total amount that is appropriated for the
purpose of a specific department or functional area.
Section 1 of the MFMA defines a “vote” as:
a) one of the main segments into which a budget of a municipality is divided
for the appropriation of money for the different departments or functional
areas of the municipality; and
b) which specifies the total amount that is appropriated for the purposes of the
department or functional area concerned
211 |Audited 2017/18 Annual Report
APPENDICES
APPENDIX A- COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE
Councillors, Committees Allocated and Council Attendance
Nr Council Members
Full Time / Part Time (FT/ PT)
Committees Allocated
*Ward and/ or Party
Represented
Percentage
Council Meetings
Attendance
Percentage Apologies for
non attendance
Nr Nr
1 Rulumeni P
P/T Developmental Planning
ANC 100% -
2 Kwedinana
P/T Community services
ANC 99% 1%
3 Sangqu P/T Infrastructure ANC 100% -
4 Kalityi SD F/T MPAC ANC 100& -
5 Sogayise P/T Ethics ANC 99% 1%
6 Mamba P
P/T Community Services
ANC 98% 2%
7 Nqwena P/T MPAC ANC 97% 3%
8 Mwahla S
PT Developmental Planning
ANC 98% 2%
9 Jamnda B
P/T Community services
ANC 98% 2%
10 Soshankane P/T Finance & Admin ANC 96% 4%
11 Mbane N.E P/T Finance & Admin ANC 95% 5%
12 Peter M
P/T Developmental Planning & WHIPS
ANC 96% 4%
13 Bungu P
P/T Developmental Planning
ANC 97% 3%
14 Tshika T
P/T Community Services
INDP 95% 5%
15 Mantshingilane S
P/T Finance and Admin& Whips
ANC 93% 7%
212 |Audited 2017/18 Annual Report
16 Namba W P/T MPAC ANC 98% 2%
17 Makeleni P/T MPAC ANC 99% 1%
18 Mahobe
P/T Community Services
ANC 97% 3%
19 Sicengu S.D P/T Finance & Admin ANC 98% 2%
20 Sitwayi T.S P/T MPAC ANC 99% 1%
21 Mrobo P/T MPAC ANC 99% 1%
22 Ndinisa S P/T whips ANC 96% 4%
23 Mantshiyose L P/T Infrastructure ANC 96% 4%
24 Matiwane V P/T MPAC ANC 96% 4%
25 Magatya N P/T MPAC ANC 96% 4%
26 Sirunu Ntanga N.B
P/T Finance and Admin& whips
ANC 96% 4%
27 Mboxela
P/T Infra & Finance and Admin
ANC 100% -
28 Tyali N.A P/T Infrastructure ANC 100% -
29. Dlova S.
Deceased June 2018
P/t
Infrastructure
ANC
54%
8%
30 Kondile. P
P/T Planning and Development
ANC 99% 1%
31 Ncethani .N
P/T MPAC ANC 99% 1%
32 Genyane C
P/T Community services
ANC 98% 2%
33 Majavu B /Speaker
F/T Rules/Public Participation com
ANC 98% 2%
34 Sibingibingi F/T Whips ANC 100% -
35 Mkhedamo N.W
F/T Infrastructure ANC
98% 2%
36 Baleni P/T Infrastructure ANC 96% 4%
213 |Audited 2017/18 Annual Report
37 Mlandu N.M
P/T Planning and Development
ANC 99% 1%
38 Nyalambisa P/T Infrastructure ANC 96% 4%
39 Ganda. N P/T Finance & admin ANC 100% -
40 Siswana. B
P/T Planning and Development
ANC 99% 1%
41 Willie X.O F/T Admin and Finance ANC 99% 1%
42 Nkomonye. N
P/T Community services
ANC 98% 2%
43 Ngomthi. N.N F/T LLF& Training com ANC 100% -
44 Makapela MK
P/T Ethics & Members Interest
ANC 100% -
45 Tyodana X M P/T Women’s Caucus ANC 98% 2%
46 Janda S.N-Mayor
P/T Mayoral Committee ANC
97% 3%
47 Mcotsho MM F/T Infrastructure ANC 99% 1%
48 Livi S C F/T MPAC ANC 100% -
49 Mbomvu
F/T Community Services
ANC 97% 3%
50 Bhele. M P/T Whips UDM 98% 2%
51 Tetyana M
P/T Developmental Planning
UDM 96% 4%
52 Tyelingane N
P/T Community Services
UDM 97% 3%
53. Takani M P/T Infrastructure UDM 99% 1%
54 Mahlathi N P/T Finance and Admin UDM 97% 3%
55 Matiti L
P/T Basic Service Delivery
UDM 96% 4%
56 Solontsi M W
P/T Good Governance & Public Participation
UDM 98% 2%
57 Msindwana P/T MPAC UDM 96% 4%
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58 Ndlodaka N
P/T Municipal Transformation & Institutional Dev.
UDM 99% 1%
59 Goniwe-Mafanya T
P/T Municipal Financial Viability
DA 97% 3%
60 Tshaka M
P/T Local Economic Development
DA 100% -
61. Mdikinda S
P/T Municipal Financial Viability
EFF 98% 2%
62 Tafeni N
P/T Municipal Transformation & Institutional Dev.
EFF 99% 1%
63 Jafta M S
P/T Local Economic Development
COPE 95% 5%
Traditional Leaders serving in the municipal council
64 Ntlokondala S
P/T Local Economic Development
Chief 98% 2%
65 Mtwesi L
P/T Basic Service Delivery
Chief 100% -
66
Nyendane S
P/T Municipal Transformation & Institutional Development
Chief 100% -
67 Sofika N
P/T Good Governance & Public Participation
Chief 99% 1%
68
Ngubechanti N
P/T Municipal Transformation & Institutional Development
Chief
98% 2%
69 Dudumayo A
P/T Municipal Financial Viability
Chief 99% 1%
70 Fudumele P
P/T Good Governance & Public Participation
Chief 96% 4%
71 Zenani N
P/T Good Governance & Public Participation
Chief 98 2%
215 |Audited 2017/18 Annual Report
72 Ndim F F
P/T Basic Service Delivery
Chief 99% 1%
73 Salakuphathwa M W
P/T Local Economic Development
Chief 93% 7%
74. Masiko M N
P/T Municipal Financial Viability
Chief 100% -
75 Sigcawu N A P/T MPAC Chieftains 100% -
APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES
1. With due regard to the extent of the functions and powers of the municipality, the need for the delegation of those functions and powers in order to ensure efficiency and effectiveness in performance and the available financial and administrative resources of the municipality to support a committee, the Council may, in terms of Section 80 of the Structures Act- establish one or more Committees
Standing Committees:
Municipal
Transformation and Institutional Development
Basic Service Delivery
Municipal Financial Viability
The purpose of the committees is to assist the executive committee or Executive Mayor in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
216 |Audited 2017/18 Annual Report
Local Economic Development
Good Governance and Pubic Participation
2.The Rules Committee
The purpose of the committee is necessary for the effective and efficient performance of any of its functions or the exercise of any of its powers in terms of Section 79 of the Municipal Structures Act (Act No 117 of 1998)
To develop, formulate and adopt policy concerning the exclusive business of the Council including its proceedings, procedures, rules, orders and practices;
3. MPAC The purpose of the committee is necessary for the effective
and efficient performance of any of its functions or the exercise of any of its powers in terms of Section 79 of the Municipal Structures Act (Act No 117 of 1998)
To perform an oversight function on behalf of council, including, but not limited to, overseeing expenditure of public funds and the utilization of Council resources;
4. Women’s Caucus Working towards profile building of women’s councilors for
effective capacity building.
Ensure gender mainstreaming and equity within municipal
processes.
Re-affirm and strengthen partnership and networks that
support women in local government and other spheres of
government and civic society.
Act as an advisory and consultative body for all women
councilors raising and representing their interests within
Municipal Council structures.
5. Public Participation Committee
To encourage active involvement of communities and community organizations in the affairs of the municipality;
To ensure the consideration, monitoring and tracking of petitions lodged to the municipality;
To ensure that timeous feedback is given to Petitioners;
To ensure adherence to Community Complaints and Petitions Handling Policy; Public Participation Policy; Public Participation Strategy and communication strategy are in place
6. Training & Equity
Committee The purpose of the committee is necessary for the effective and efficient performance of any of its functions or the exercise of any of its powers in terms of Section 79 of the Municipal Structures Act (Act No 117 of 1998)
7. Whippery Committee To discuss and process matters relating to political management of the institution
8. Local Labour Forum The purpose of the committee is to strengthen the working relations between the employer and the employee
217 |Audited 2017/18 Annual Report
9. Audit Committee The purpose of the committee is to function in line with section 166 of the Municipal Finance Management Act 56 of 2003
10. Risk Committee The purpose of the committees is to assist the executive committee or Executive Mayor in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
11. IGR Forum The purpose of the committees is to assist the executive committee or Executive Mayor in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
12. IDP, Budget & PMS Technical Steering Committee
The purpose of the committee to provide technical support towards assisting the Mayoral Committee in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
13. IDP, Budget & PMS Steering Committee
The purpose of the committees is to assist the executive committee or Executive Mayor in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
14. IDP, Budget & PMS Rep Forum
The purpose of the committees is to assist the executive committee or Executive Mayor in terms of Section 80 of the Municipal Structures Act (Act No 117 of 1998)
APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE
Third Tier Structure
Directorate Director/Manager (State title and name)
Office of the Municipal Manager Mxolelanisi Manxiwa), Ncebakazi Kolwane (started in August 2017), Anele Mtyhida, Sisa Baliso
Developmental Planning Lithalobom Qunta: Kayalethu Majavu
Infrastructure Services Chuma Lusanda Makonza, Thulani Masangwana
Corporate Services Nonzwakazi Hanise, Siyamthanda Mashologu
Financial Services Vuyo Jam Jam, Ndoda Zibi
Community Services Lungisa Bongo, Isaac Xolile Siguye
218 |Audited 2017/18 Annual Report
APPENDIX D: FUNCTIONS OF MUNICIPALITY/ ENTITY
Powers and Functions
The table below gives a list of our assigned powers and functions and also provides an
analysis of our levels of capacity or gaps for undertaking our constitutional and legal mandate.
Functions of Mbhashe Definition Capacity to perform
Air pollution The control and monitoring of air pollution that
adversely affects human health or well-being or the
ecosystems useful to mankind, now or in future.
No
Beaches and Amusement facilities The area for recreational opportunities and facilities
along the sea shore available for public use and any
other aspect in this regard which falls outside the
competence of the national and provincial
government.
Yes
Billboards and display of
advertisements in public places
Manage, facilitate and collect rentals from all
billboards within the jurisdiction of Mbhashe Local
Municipality.
Yes
Building regulations Development of by-laws, enforcement of by-laws,
approval of building plans according to National
Building Regulations
Yes
Cemeteries, funeral parlours and
crematoria
The establishment conduct and control of facilities
for the purpose of disposing of human and animal
remains.
Yes
Child care facilities Facilities for early childhood care and development
which fall outside the competence of national and
provincial government
Yes
Cleansing The cleaning of public streets, roads and other public
spaces either manually or mechanically
Yes
219 |Audited 2017/18 Annual Report
Control of public nuisance The regulation, control and monitoring of any activity,
condition or thing that may adversely affect a person
or a community
Yes
Control of undertakings that sell liquor
to the public
The control of undertakings that sell liquor to the
public that is permitted to do so in terms of provincial
legislation, regulation and licenses , and includes an
inspection service to monitor liquor outlets for
compliance to license requirements in as far as such
control and regulation are not covered by provincial
legislation
Yes
Disaster Responsible for the co-ordination of Disaster
Management
Yes
Facilities for the accommodation, care
and burial of animals
The provision of and/or the regulation, control and
monitoring of facilities which provide accommodation
and care for well or sick animals and the burial or
cremation of animals, including monitoring of
adherence to any standards and registration
requirements and/or compliance with any
environmental health standards and regulations
Yes
Fencing and fences The provision and maintenance and/or regulation of
any boundary or deterrents to animals and
pedestrians along streets or roads
No
Firefighting Services Provision of firefighting services and resources No
Housing Facilitation of the Housing development, with key
focus on beneficiary identification, town planning
matters, building plans and stakeholder engagement
Yes
Licensing of dogs The control over the number and health status of
dogs through a licensing mechanism.
No
220 |Audited 2017/18 Annual Report
Local sport facilities The provision, management and/or control of any
sport facility within the municipal area.
Yes
Local Tourism Tourism development and promotion Yes
Markets The establishment, operation, management,
conduct, regulation and/or control of markets other
than fresh produce markets including market
permits, location, times, conduct etc.
No
Municipal abattoirs The establishment conduct and/or control of facilities
for the slaughtering of livestock.
No
Municipal Airports Provision and management of facilities No
Municipal Health Services Water quality monitoring, food control, waste
management, health surveillance of premises,
surveillance and prevention of communicable
diseases, vector control, environmental pollution
control and disposal of the dead
No
Municipal parks and recreation The provision, management, control and
maintenance of any land, gardens or facility set aside
for recreation, sightseeing and/or tourism and
include playgrounds but exclude sport facilities.
Yes
Municipal Planning The compilation and implementation of and
Integrated Development Plan in terms of the
Systems Act.
Yes
Municipal Public Transport Provision of services and infrastructure and
regulation of the passenger transport services
No
Municipal Public Works Provision of community facilities other than schools
and clinics
Yes
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Municipal Roads The construction, maintenance, and control of a road
which the public has the right to and includes, in
addition to the roadway the land of which the road
consists or over which the road extends and anything
on that land forming part of, connected with, or
belonging to the road, and also, for purposes of a
local municipality, includes a street in build-up areas.
Yes
Pontoons and ferries Pontoons, ferries, jetties, piers and harbors,
excluding the regulation of international and national
shipping and matter related thereto, and matters
falling within the competence of national and
provincial governments
Yes
Pounds The provision, management and control of any area
/facility set aside by the municipality for the securing
of any animal or object confiscated by the
municipality
Yes
Public Places The management, maintenance and control of any
land or facility owned by the municipality for public
use
Yes
Storm water The management of systems to deal with storm
water in built-up areas
Yes
Street lighting The provision and maintenance of lighting for the
illuminating of streets
Yes
Street trading The control, regulation and monitoring of the selling
of goods and services along a public pavement or
road reserve
Yes
Trading regulations The regulation of any area facility and/or activity
related to the trading of goods and services within
the municipal area not already being regulated by
national and provincial legislation
Yes
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Traffic and parking The management and regulation of traffic and
parking within the area of the municipality including
but not limited to, the control over operating speed of
vehicles on municipal roads.
Yes
APPENDIX E: WARD REPORTING
Functionality of Ward Committees
Ward Name (Number)
Name of Ward Councillor and elected Ward committee
members
Committee established (Yes / No)
Number of monthly
Committee meetings
held during the
year
Number of quartely reports
submitted to
Speakers Office on
time
Number of quarterly
public ward
meetings held
during year
Ward 1 Ward Councillolr P. Rulumeni Joseph Noluvuyo, Jonga Nomadiya, Mniki Nomfusi, Wunguza Khululwa, Mabhele Luleka Margaret, Makwe Babalwa Ntombokuqala, Gqagqa Phindiwe, Kwatsha Dunyiswa, Nama Bulelwa Albertina, Nkwali Lindokuhle Tandisizwe.
Yes 0 0 0
ward 2 Ward Councillor VN Kwedinana Mfihlo Nomkhawuleli, Zekani Princess Nositi, Mdayidayi Nolivo, Ntlabati Nozuko, Jaza Sindiswa, Tutu Ntombifikile Victoria, Saki Mzikayise, Thobile Mathole, Mabi Zanele, Nolusapho Maphini .
Yes 0 1 0
ward 3 W/Councillor N Sangqu Nkohla Nomfezeko, Ncise Nomapelo Lucia, Mgushelo Yonela, Nobhalisa Nondumiso, Jamela Nomawetu, Ndzandzeka Noludwe,
yes 0 1
0
223 |Audited 2017/18 Annual Report
Roji Thabisa, Madlelana Ntombizodwa, Rafu Fundiswa, Zamatyala Nothusile.
ward 4 Ward Councillor S. Kalityi Jingxeni Tsolwana, Pandle Khethiswa, Gxotani Zukisa, Zwemu Akhona, Nonkwali Gcwanini Joseph, Saba Funeka, Ngcangca Nozukile, Xhelitole Nozuko, Potelwa Mayenzeke, Mfanyana Thobeka.
yes 2 1
0
ward 5 Ward Councillor NO Sogayise Damba Sifanele, Dayimani Bambelela, Majaca Nontobeko, Potelwa Mbongeni Maxwell, Somyala Mbulelo, Sikweyiya Nqaba, Mathebula Surprise Erickson, Gaqa Ziphilele, Cefa Andiswa, Mngambi Nzondelelo .
yes 0 1 0
ward 6 Ward Councillor P.Mamba Ngcana Novangeli, Glen Nokwakha, Pamla Nomalady, Mangxola Semcelile, Nkunzi Sibusiso, Zatu Bukelwa, Mtshotshisa Matemba, Ndinayo Khanyisani, Ncapayi Princess Vatiswa, Mkhono Nsixi Hendrick.
yes 3 1 0
ward 7 Ward Councillor N. Nqwena Dilayi Andiswa, Ndinisa Ndumiso, Jevu Nomfundo Veronica, Siyo Nolukholo, Bhidi Xolisa, Mkrokrelwa Nobesuthu, Ngcwembe Mthandazo, Sigqibo Lesley, Nokele No-Second Domakosi Princess, Joseph Phelandaba.
yes 0 1 0
224 |Audited 2017/18 Annual Report
ward 8 Ward Councillor S. Mwahla. Ngxoko Nowineti, Mavubengwana Calvin Tyhopho, Sigidi Siziwe, Magcweka Siphakaphaka, Mlenzana Mthwesi, Dyubele Vuyelwa, Nonkwenkwe Zola, Ndabakanyise Nothayimile, Menziwa Siyabulela, Sigidi Mputumi.
Yes 0 1 0
ward 9 Ward Councillor B Jamnda Matomane Tandiwe, Sigwayi Kungeka, Dangazele Gamalakhe Monwabisi, Mbeki Czarina Nolitha, Mdletye Ntombizanele, Mnci Nokwandisa, Papa Nolita, Ntamo Akhona, Finca Ngeniswa, Zoleka Bongiwe
Yes 0 0 0
ward 10 Ward Councillor LM Soshankane. Coki Ntombiyakhe, Mbawu Nomakwayi, Jembula Lejina, Rwayi Siyabulela, Nama Bukiwe, Sixinti Nzame William, Bomela Nomzi, Malgas Thandekile, Mlenga Madodandile, Malashe Mandisa,
Yes 0 1 0
ward 11 Ward Councillor N E Mbane, Ntantiso Nombulelo Beauty, Ngolothi Nonyusile, Mngesi Sydney Sibongile, Krishe Nolubapho Neliswa, Delani Mlungisi, Toto Bantubonke, Mjiwu Anelisa, Sityata Nokhanyiso Florence, Nkomonye Bongiwe Rita, Debese Elliot Nogcoloza.
Yes 0 1 0
225 |Audited 2017/18 Annual Report
ward 12 Ward Councillor M Peter Nzanzeka Sicelo, Mpuku Thandeka, Nkebese Ntomboxolo, Hagile Sheilla Nomzamo, Landu Fuziwe, Kebetu Ngxobololo Herman, Ngenelwa Nokonwaba, Letese Lindiwe, Fani Princess Nondwe, Mpuku Thandeka ,
Yes 0 1 0
ward 13 Ward Councillor P. Bhungu Mlauli Ntobeko Wesley, Paji Wellington Gwanqana, Mswelanto William, Funda Ncedo, Zingweyi Phumza, Dwakasa Ondela Ophelia, Mgushelo Sihle, Yayo Nonezile, Mvuyo Nondaliso, Mntuwonke Nowethu .
ýes 0 0 0
ward 14 Ward Councillor T Tshika Masiko Jeep, Gwada Zibekile, Qotyana Mzwabantu, Dase Nobuhle Emerentia, Mtshazi Nomalizo, Malgas Thokozile Sylvia, Cilo Mongezi, Mafenuka Mtobeli, Mpozolo Nontsasa, Mhlonyane Nomendu Margaret,
yes 0 1 0
ward 15 Ward Councillor S. Mantshingilane Ntongana Mfundisi, Damaneti Xolile, Faniso Mntunaye, Nqabeni Weleshe Victor, Joko Lumanyano, Blayi Nomsobo, Gongqo Mzawupheli, Nonkatha Lindeka, Mdabuka Siyabulela, Maphi Dan,
Yes 0 1 0
226 |Audited 2017/18 Annual Report
ward 16 Ward Councillor W. Namba Bomvu Nomvelwano, Isaacs Bradley Leonard, Dlandlu Nomfundo, Patience Nophathile, Dingekaya Tembeka, Bhungeni Lindiwe, Mkhohliswa Sikhinci, Ngwenya Welcome, Thwethwa Nosakhele, Nompho Neliswa, Mandlakapheli Siwowo,
yes 0 1 0
ward 17 Ward Councillor P. Makeleni Lolonga Phindile, Nameko Nomachule, Nzutha Thobeka, Manqaku Dumisani, Nqiningalo Velavela, Nkalweni Wiseman Sibongile, Hlonti Mzuzile, Mgxabayi Nolesini Xoliswa, Mgcineni Nomboniso, Mdyobe Liziwe .
yes 0 1 0
ward 18 Ward Councillor L. Mahobe Gwebityala Sikhosana, Loliwe Nomanelisi, Balindlela Nothemba, Balikulu Nobongile, Qaratana Nqozana, Zunguzane Albert Qumra, Mahlangu Mxolisi, Funda Nkosinathi, Xingile Noposile, Tsengwa Mkanyisi Ayanda.
yes 0 1 0
ward 19 Ward Councillor S.D.Sicengu Tongwana Monwabisi, Somgidi Yandisa, Matyala Juda, Mkhefu Mbuyiseli, Sonwabo Mercy Sibundwana, Mtshiswa Buziwe, Banjwa Nosipo, Mbangasini Ntsikelelo, Nyalivani Thembile, Mziwembila Patiswa ,
Yes 0 1 0
ward 20 Ward Councillor T.S.Sitwayi Majambe Sindiswa, Nokholekile Makhwezi Nosiviwe, Fuku Mbukeli, Mthi Xoliswa, Ncatsha Xolelwa,
yes 0 1 0
227 |Audited 2017/18 Annual Report
Mabhenu Nyameka, Sunduza Mlulam,I Mdanda Dumisani, Xamba Sidima, Xelinto Bhoswana.
ward 21 Ward Councillor: S. Mrobo Gobeni Sixolile, Macamba Mengezi, Ndlova Ndawoyethu, Ngqengqa Catherine Nomaka, Sotyatya Labourman Sobantu, Genuka Nomatshaka, Xubuzane Nolusano, Thole Gladman Malungelo, Jama Dreya Sibongile, Nothobile.Mirriam. Solontsi
yes 0 1 0
ward 22 Ward Councillor: S Ndinisa Ndesi Bulelwa Elsie, Delihlazo Zizo, Mpotya Zibonele, Nkohla Noziphiwo, Yoli Nonkqubela, Ntunja Khayalethu, Sidlanga Nompilo, Mthini Nompotisho Beauty, Nani Thandile, Somdaka Thelma ,
ýes 1 1 0
ward 23 W/Councillor L. Mantshiyose Xam. Marasi, Nkope Nontimela, Ntlomelwana Vuyiswa, Zweni Ntomboxolo Christina, Nake Nonikile, Maranjana No-Olert Noluthando, Meje Ntombokuqala, Mngqenge Mandla, Mfama Cikizwa, Lwangu Siphokazi.
Yes 0 1 0
ward 24 W/Councillor V. Matiwane Dlongwana Nozuko Viginia, Xala Nowezile Theodorah, Vunguvungu Nopakamisa, Nduku Buyiswa, Mkiva Nonceba, Kalimashe Nozinzile, Rachel Qatu Gweba, Siqabu Siyabonga, Ndlebe Nomsa, Solontsi Nomsa .
Yes 0 1 0
228 |Audited 2017/18 Annual Report
Ward 25 W/Councillor N. Magatya Zitho Khenneth, Kasa Noludwe, Ngobo Akhona Raymond, Ngwaca Notwocent Patricia, Xapa Mnyamezeli, Mnwana Zimkhitha, Mkiva Xolile, Hlam Thandisizwe, Nombewu Zalisile, Mbiko Nonyameko Patience.
Yes 0 1 0
ward 26 W/Councillor N.B Sirunu-Ntanga Balindaba Mpumelelo Joker, Genyane Wilson, Mxhanywa Thembinkosi, Velaphi Steven, Nyathela Ntombizanele, Rangayi Nomabelu Pamella, Mhlabeni Nomasimpiwe, Genukile Neli, Lentaka Sandiswa, Mzwembila Phatiswa.
Yes 0 1 0
ward 27 W/Councillor N N Mboxela Mgedle Nothemba, Gobi Jona Nomthandazo, Matu Kwedinana, Qunta Tamella, Lwazi, Daka, Mqinyana Nonkosiko, Qavane Skoki, Ncuthushe Nomabelu Florence, Ngcuthushe Florence, Ludidi Maxhoba.
Yes 0 1 0
ward 28 W/Councillor N.A.Tyali Nowewuse Lindile, Msaro Phumzile, Manyube Zodwa, Ndlelani Liziwe, Jayi-Jayi Noluthando, Kheyizana Lindelwa, Gquthani Notheko Thotyiwe, Makhwenkwe Zibele, Mendwana Kwayiyo, Maputuma Nowebile.
yes 0 1 0
229 |Audited 2017/18 Annual Report
ward 29 W/Councillor S. Dlova Sinani Busisiwe, Mayiji Philile, Majaza Vuyokazi, Somatika Orianda Nolundi, Bekameva Ntombizilungile, Nqulwana Nofanelekile, Mtyida Thembinkosi, Ndevu William Mziwonke, Ncumeza Pilisa, Ntloko Tryphina Nosango .
yes 0 1 0
ward 30 W/Councillor P P Kondile Mzikabawo. Amon. Mhaga, Patience. Nosicelo. Dyonas, Pokopiya Nolwando Victoria, Vululwandle Wiliam, Denisi Nondleko, Booi Lennox Zenzile, Mnukwa Nomazizi, Xola Ntombekaya Lillian, Sgobongo Zoleka Vivian, Mvandala Bongani .
Yes 0 1 0
ward 31
W/ Councillor N. Ncethani Makapela Mziwetemba Donald, Ludonga Lindela, Zolwana Monwabisi, Maqwelana Nomzamo, Sikiti Noxolo, Mhlanga Nokwakha, Majola Eric Phindile, Jojwana Chwayita, Tutu Nosipho, Tshayisa Mcoseleli
Yes 0 1 0
War 32
W/Councillor C. Genyane Dikilokhwe Laledle Mbhofithi Thethani Jwara Nontuthuzelo Ndayenjani Nokubonga Siloko Nozukile Mente Nosakhele Mabhovana Thandiwe Qhijana Ntombizandile Toyiya Lungile Nogingxa Nosakhele
Yes 0 0 0
230 |Audited 2017/18 Annual Report
231 |Audited 2017/18 Annual Report
APPENDIX F: WARD INFORMATION
Ward title: Ward Name Number
Capital Projects : Seven Largest in year 0
No Project Name and Details Start Date End Date Total Value Total Value
1 Road Surfacing Dutywa 26 February 15 02 February 2017 R 24 736 163.20
2 Road Surfacing Elliotdale 26 February 15 17 November 2016
R 16 091 165.47
3 Ndalatha- xora mouth 16 March 16 R 8 933 319.73
4 Talimofu access road 18 February 16 R 5 651 914.18
5 Nonkqubela access road 22 March 16 02 February 2017 R 4 890 368.93
6 Pewula access road 16 March 16 R 4 364 616.43
7 Dutywa Community Hall 12 October 2016 06 June 2017 R3,070,000.00
BASIC SERVICES PROVISION
DETAILS WATER SANITATION
ELECTRICITY
REFUSE HOUSING
Households with minimum service delivery ADM ADM 43694 22199 20091
Households without minimum service delivery
ADM ADM 16430 37925 40033
Total House holds 60124 60124 60124
TOP FOUR SERVICE DELIVERY PRIORITIES PER WARD
NO Priority Name and Details Progress During Year 0
1 Municipal Roads Constructed 154km
2 Municipal Roads Maintained 691.2km
3 Electrification (Grid Connections) 2661 Connections
4 Electrification (Non Grid Connections) 3000 Connections
5 Community Services infrastructure 4 community Halls
APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE
232 |Audited 2017/18 Annual Report
Resolution Number
Item Resolution Audit Commit meeting date
Comments
01 Performance information(Non-financial)
Management should amend and adjust their targets to accommodate all those milestones that were not achieved in the previous quarters due unforeseen circumstances. This is referred to infrastructure projects. Council resolution should also be granted for those amendments.
24th of April 2017
This will be confirmed in the first quarter of 2017/2018 financial year
This has been since resolved. All the targets were amended as such during December/January 2017. The amended targets were implemented during January 2018
02 Performance
information(fi
nancial)
Management should
ensure that budget of
the municipality is not
over or under-spent.
There should be
alignment between the
targets as covered in
the approved SDBIP
and their budget as
per the approved
budget document,
24th of April 2017
This will be confirmed after finalization of
the annual performance information both
on finance activities and non-finance
activities by the municipality.
In consideration of the annual budget for
financial year 2017/2018, there budget of
the municipality is not under or
overspent.
02 Port-folio of
evidence:
Performance
information
All HOD should
develop a credible
port-folio of evidence
files for the
performance
information. This
should be aligned with
the new Auditor’s
general methodology
when auditing
performance
information
24th of April 2017
This has been implemented
233 |Audited 2017/18 Annual Report
04 mSCOA
implementati
on
Management should
ensure that during the
migration of data,
internal audit is
involved
24th of April 2017
Done
05 SAP-(mSCOA) Management should
re-consider another
system compared with
the current SAP
system for mSCOA
compliance due to its
price
18th October
2016
SAP has been substituted by SAGE
evolution
06 Internal audit
reports(Interna
l controls)
Management should
strengthen their
internal controls by
also developing the
procedure manual. As
per internal audit
reports, high risk areas
where management
need to consider the
procedure manual and
updating of the policies
were:
Fleet management;
revenue management
and Leave
management
18th October
2016
Procedure manuals for entire
departments were developed and are in
place.
New policies were developed and old
policies were reviewed. All the new
developed and reviewed policies were
presented in a council policy workshop
07 Internal audit
budget and
staff
Internal audit unit
should be strengthen
by appointing
additional staff
15th July 2016 Reviewed organogram with the
submission of one senior internal auditor
has been submitted and approved by the
council for implementation.
The implementation of the above
resolution was not implemented due to
budgetary issues.
Interim arrangement was to appoint the
panel of services providers to assist and
bridge the skills gap was considered as
234 |Audited 2017/18 Annual Report
an alternative. Three panel of service
providers was appointed during
February/ March 2018 as a co-sourcing
method. The appointment is for a period
of three years.
235 |Audited 2017/18 Annual Report
APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS
NOT APPLICABLE
APPENDIX I –MUNICIPAL ENTITY/SERVICE PROVIDER PERFORMANCE SCHEDULE
NOT APPLICABLE
APPENDIX J – DISCLOSURES OF FINANCIAL INTEREST
Disclosure by Councilors
MJ JAFTA None
SD KALITYI Yes
B SISWANA Yes
B JAMNDA Yes
XO WILLIE None
M PETER Yes
T TSHIKA Yes
M MBOMVU Yes
T MAFANYA None
N MAGATYA None
NN NDLODAKA None
M TETYANA None
M TAKANI Yes
236 |Audited 2017/18 Annual Report
XP BALENI Yes
X TYODANA None
MM MCOTSHO Yes
N NCETANI Yes
NM MLANDU Yes
S NDINISA Yes
P RULUMENI Yes
V MATIWANE Yes
KD MSINDWANA Yes
ST SITWAYI Yes
MK MAKAPELA None
S MWAHLA Yes
NB SIRUNU NTANGA Yes
SC LIVI Yes
B MAJAVU None
L MATITI Yes
SN JANDA Yes
NT TAFENI None
237 |Audited 2017/18 Annual Report
N TYELINGANYE Yes
S MANTSHINGILANE Yes
S MDIKINDA Yes
NM MKHEDAMO Yes
M TSHAKA Yes
PP KONDILE Yes
C GENYANE Yes
N GANDA Yes
P BUNGU Yes
M SIBINGIBINGI Yes
M BHELE None
L MAHOBE Yes
SD SICENGU Yes
NE MBANE Yes
P MAMBA Yes
NO SOGAYISE Yes
W NAMBA Yes
N MAHLATHI None
238 |Audited 2017/18 Annual Report
S DLOVA Yes ( Deceased)
LL SANGQU Yes
NN NGOMTHI Yes
L MANTSHIYOSE Yes
N NKOMONYE Yes
N NQWENA Yes
WM SOLONTSI None
S MROBO Yes
VN KWEDINANA Yes
LM SOSHANKANE Yes
NN MBOXELA Yes
N NYALAMBISA None
NA TYALI Yes
P MAKELENI Yes
OFFICIALS
64 SV POSWA Yes
65 M NAKO Yes
66 X SIKOBI Yes
239 |Audited 2017/18 Annual Report
67 NY MQOQI Yes
68 MP NINI Yes
69 CB MQINGWANA Yes
70 M MTONGANA Yes
APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE
ANNEXURE K1: REVENUE COLLECTION PERFORMANCE BY VOTE
Revenue Collection Performance by Vote
R' 000
Vote Description
Year -1 Current: Year 0 Year 0 Variance Actual Original
Budget Adjusted Budget
Actual Original Budget
Adjustments
Budget
Executive & Council- Vote 1 0 11 047 000 11 047 000 11 047 000 0% 0%
Finance & Admin - Vote 2 181 706
890 234 942
815 241 374
477 227 257
212 3% 6% Planning & Development - Vote
3 1 683 326 1 393 352 566 101 1 024 176 26% -81% Community & Social services -
Vote 4 586 516 473 187 473 187 492 534 -4% -4% Housing - Vote 5 0 0 0 0 0% 0% Public safety - Vote 6 1 487 794 2 439 694 3 439 694 3 709 820 -52% -8% Environmental management -
Vote 7 350 000 0 0 0 0% 0% Solid waste- Vote 8 1 024 394 807 560 807 560 -43 217 105% 105% Waste water management -
Vote 9 190 450 86 537 86 537 86 394 0% 0%
Roads transport - Vote 10 53 640 000 117 385
000 117 385
000 84 621 492 28% 28% Electricity - Vote 11 Other - Vote 12 Example 13 - Vote 13 Example 14 - Vote 14 Example 15 - Vote 15
Total Revenue by Vote 240
669 368
575 375
180 328
195
0.11
0.13
240 |Audited 2017/18 Annual Report
ANNEXURE K2: REVENUE COLLECTION PERFORMANCE BY SOURCE
Revenue Collection Performance by Source
R '000
Description
Year -1 Year 0 Year 0 Variance
Actual Original Budget
Adjustments Budget
Actual Original Budget
Adjustments Budget
Property rates 4 358
5 844
5 844
6 587
-13% -13%
Property rates - penalties & collection charges
–
–
–
–
0% 0%
Service Charges - electricity revenue
–
–
–
–
0% 0%
Service Charges - water revenue –
–
–
–
0% 0%
Service Charges - sanitation revenue
–
–
–
–
0% 0%
Service Charges - refuse revenue 797
771
771
921
-19% -19%
Service Charges – other –
–
–
–
0% 0%
Rentals of facilities and equipment 773
757
1 170
1 028
-36% 12%
Interest earned - external investments
6 022
4 000
4 500
4 604
-15% -2%
Interest earned - outstanding debtors
–
–
–
–
0% 0%
Dividends received –
–
–
–
0% 0%
Fines 627
919
461
373
59% 19%
Licences and permits 550
1 673
1 673
791
53% 53%
Agency services –
–
–
–
0% 0%
Transfers recognised - operational 161 824
169 325
171 348
170 243
-1% 1%
Other revenue 1 121
10 735
30 735
8 642
19% 72%
Gains on disposal of PPE 373
100
100
–
100% 100%
Environmental Protection –
–
–
0% 0%
Total Revenue (excluding capital transfers and contributions)
176 447
194 124
216 602
193 188
0.48% 10.81%
241 |Audited 2017/18 Annual Report
ANNEXURE L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG
Conditional Grants: excluding MIG
R' 000
Details
Budget Adjustments
Budget
Actual Variance Major conditions applied by donor (continue below if
necessary)
Budget Adjustments Budget
Neighbourhood Development Partnership Grant
Public Transport Infrastructure and Systems Grant
Equitable Share 220 782 000.00
209 735 000.00
193 756 000.00 12% 8%
Unspent MIG in 2014/15 was withheld and deducted from Equitable Share
Municipal Systems Improvement Grant
934 000.00
934 000.00 934000 0% 0%
Improvement of Systems
Other Specify: 0% 0%
Finance Management Grant
1 600 000.00
1 600 000.00 1600000 0% 0%
Capacity Building for Finance Officials and appointment of Interns
EPWP Incentive 1 153 000.00
1 153 000.00 1153000 0% 0%
Capacity Building and employment growth
Libraries 300 000.00
300 000.00 300000 0% 0% Library operations
Electrification 2 000 000.00
3 000 000.00 3000000 0% 0%
Electrification of municipal wards
Total 226 769 000.00
216 722 000.00
200 743 000.00 4% 7%
APPENDIX M: CAPITAL EXPENDITURE- NEW & UPGRADE/ RENEWAL PROGRAMMES
Not Applicable
APPENDIX N: CAPITAL PROGRAMM BY PROJECT YEAR 0
Not Applicable
242 |Audited 2017/18 Annual Report
APPENDIX O: CAPITAL PROGRAMM BY PROJECT BY WARD YEAR 0
Capital Programme by Project by Ward: Year 0
R' 000
Capital Project Ward(s) affected Works completed (Yes/No)
Water
"Project A"
"Project B"
Sanitation/Sewerage
Electricity 22 Yes
23 Yes
27 Yes
29 Yes
14 Yes
Housing
Destitute housing 2,3,4,5,6,7,8,9,10,32 Yes
Destitute housing Yes
Refuse removal All Wards Yes
Stormwater 14 Yes
09 Yes
01 Yes
03 Yes
15 Yes
04 Yes
243 |Audited 2017/18 Annual Report
13 Yes
Economic development
Sports, Arts & Culture 1 No
13 No
25 No
4 Yes
29 Yes
21 Yes
Environment
Health
Safety and Security All Wards Yes
ICT and Other
T O
APPENDIX P: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS
Not Applicable
APPENDIX Q: SERVICE BACKLOGS EXPERIANCED BY THE COMMUNITY WHERE
ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION.
Service Backlogs Experienced by the Community where another Sphere of Government is the Service Provider (where the municipality whether or not act on agency basis)
Services and Locations Scale of backlogs
Impact of backlogs
Clinics:
None
Housing:
244 |Audited 2017/18 Annual Report
Low Cost Houses in Willowvale 90 houses Unhappiness and crime associated with unfinished houses
Elliotdale rectification 292 houses
Licensing and Testing Centre:
Dutywa 1 Loss of revenue by the municipality.
Reservoirs
None
Schools (Primary and High):
None
Sports Fields:
Willowvale 1(Still under construction Delayed youth development
APPENDIX R: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY
None
APPENDIX S: NATIONAL AND PROVINCIAL OUTCOME FOR LOCAL GOVERNMENT
RE: REQUEST FOR THE CONSIDERATION OF KEY PERFORMANCE INDICATORS IN THE
ANNUAL REPORT
The following is the list of indicators that were agreed upon and on how the performance information
should be populated:-
Chapter: Organisational Transformation and Institutional Development –KPA 1
Annual performance as per key performance indicators in municipal transformation and
organizational development
245 |Audited 2017/18 Annual Report
Indicator name Total
number of
people
(planned
for) during
the year
under
review
Achievement
level during
the year
under review
Achievement
percentage
during the
year
Comments on
the gap
1 Vacancy rate for all
approved and budgeted
posts;
284 273 96%
2 Percentage of
appointment in strategic
positions (Municipal
Manager and Section
57 Managers)
7 6 85%
3 Percentage of Section
57 Managers including
Municipal Managers
who attended at least 1
skill development
training course within
the FY
7 7 100%
4 Percentage of
Managers in Technical
Services with a
professional
qualification
2 2 100%
5 Level of PMS
effectiveness in the DM
– (DM to report)
246 |Audited 2017/18 Annual Report
Indicator name Total
number of
people
(planned
for) during
the year
under
review
Achievement
level during
the year
under review
Achievement
percentage
during the
year
Comments on
the gap
6 Level of effectiveness of
PMS in the LM – (LM to
report)
The Municipality does have the Performance Management
Framework in the financial year. After the consultation process
the municipal council adopted the PMS framework in July
2017. The performance agreements were signed by all section
56 managers. The municipality implemented the PMS
framework and the PMS reports were done for the year as
prescribed by the legislation.
7 Percentage of staff that
have undergone a skills
audit (including
competency profiles)
within the current 5 year
term
275 275 100%
8 Percentage of
councillors who
attended a skill
development training
within the current 5 year
term
75 74 98,6%
9 Percentage of staff
complement with
disability
5 1 20%
10 Percentage of female
employees
275 129 46,9%
247 |Audited 2017/18 Annual Report
Indicator name Total
number of
people
(planned
for) during
the year
under
review
Achievement
level during
the year
under review
Achievement
percentage
during the
year
Comments on
the gap
11 Percentage of
employees that are
aged 35 or younger
275 123 44.7%
12 Adoption and
implementation of HRD
Plan including WSP
30 April
2017
WSP 30 April
2017
100%
Chapter: Basic Service delivery performance highlights (KPA 2)
Annual performance as per key performance indicators in water services
Indicator
name
Total number of
household/custome
r expected to
benefit
Estimate
d
backlogs
(actual
numbers)
Target
set for
the FY
under
review
(actual
numbers
)
Number of
HH/custome
r reached
during the
FY
Percentage
of
achievemen
t during the
year
1 Percentag
e of
household
s with
access to
potable
water
Not a WSA nor WSP
2 Percentag
e of
indigent
household
s with
access to
Not a WSA nor WSP
248 |Audited 2017/18 Annual Report
free basic
potable
water
3 Percentag
e of clinics
with
access to
potable
water
Not a WSA nor WSP
4 Percentag
e of
schools
with
access to
potable
water
Not a WSA nor WSP
5 Percentag
e of
household
s in formal
settlement
s using
buckets
Not a WSA nor WSP
Annual performance as per key performance indicators in Electricity services
Indicator
name
Total number of
household/custome
r expected to
benefit
Estimate
d
backlogs
(actual
numbers)
Target
set for
the f.
year
under
review
(actual
numbers
)
Number of
HH/custome
r reached
during the
FY
Percentage
of
achievemen
t during the
year
1 Percentag
e of
household
s with
access to
60124 15463 560 967 173%
249 |Audited 2017/18 Annual Report
electricity
services
2 Percentag
e of
indigent
household
s with
access to
basic
electricity
services
3 Percentag
e of
indigent
household
s with
access to
free
alternative
energy
sources
60124 0 1000 3531 353%
Annual performance as per key performance indicators in sanitation services
Indicator name Total number
of
household/cus
tomer
expected to
benefit
Estimated
backlogs
(actual
numbers)
Target
set for
the f.
year
under
review
Number
of
HH/custo
mer
reached
Percentage
of
achieveme
nt during
the year
1 Percentage of
households with
access to sanitation
services
Not a WSA nor
WSP
2 Percentage of
indigent households
with access to free
basic sanitation
services
Not a WSA nor
WSP
250 |Audited 2017/18 Annual Report
Indicator name Total number
of
household/cus
tomer
expected to
benefit
Estimated
backlogs
(actual
numbers)
Target
set for
the f.
year
under
review
Number
of
HH/custo
mer
reached
Percentage
of
achieveme
nt during
the year
3 Percentage of
clinics with access
to sanitation
services
Not a WSA nor
WSP
4 Percentage of
schools with access
to sanitation
services
Not a WSA nor
WSP
Annual performance as per key performance indicators in road maintenance services
Indicator
name
Total number of
household/custom
er expected to
benefit
Estimate
d
backlogs
(actual
numbers
)
Target
set for
the f.
year
under
review
(Actual
numbers
)
Number of
HH/custome
r reached
during the
FY
Percentage
of
achievemen
t during the
year
1 Percentage
of
households
without
access to
gravel or
graded
roads
Total road network
1879.80 km
418.8km 300km 315.1 km 105%
2 Percentage
of road
infrastructur
e requiring
upgrade
15 km 1864.8 0km 0km 100%
3 Percentage
of planned
30km 1080km 30km 184km 100%
251 |Audited 2017/18 Annual Report
new road
infrastructur
e actually
constructed
4 Percentage
of capital
budget
reserved for
road
upgrading
and
maintenanc
e effectively
used.
Annual performance as per key performance indicators in waste management services
Indicator
name
Total number of
household/custom
er expected to
benefit
Estimate
d
backlogs
(actual
numbers)
Target
set for
the f.
year
under
revie
w
Number of
HH/custome
r reached
Percentage
of
achievemen
t during the
year
1 Percentage
of
households
with access
to refuse
removal
services
60124 60124 60124 60124 100%
2 Existence of
waste
management
plan
IWMP was reviewed in the 2016/17 financial year.
252 |Audited 2017/18 Annual Report
Annual performance as per key performance indicators in housing and town planning
services
Indicator name Total number of
household/customer
expected to benefit
Estimated
backlogs
(Actual
numbers)
Target
set for
the f.
year
under
review
Number of
HH/customer
reached
Percentage
of
achievement
during the
year
1 Percentage of households
living in informal
settlements
910 None None None 0%
2 Percentage of informal
settlements that have
been provided with basic
services
910 None None None 0%
3 Percentage of households
in formal housing that
conforms to the minimum
building standards for
residential houses
Not known N/A N/A 0%
4 Existence of an effective
indigent policy
The municipality is in the process of updating the Indigent Register.
5 Existence of an approved
SDF
2016 / 2017 approved reviewed SDF
6 Existence of Land Use
Management System
(LUMS)
Zoning Plans, Transkei Town Planning Scheme and SPLUMA currently in
use.
253 |Audited 2017/18 Annual Report
CHAPTER: MUNICIPAL LOCAL ECONOMIC DEVELOPMENT FRAMEWORK- (KPA 3)
Annual performance as per key performance indicators in LED
Indicator name Target set
for the
year
Achievement
level during the
year (absolute
figure)
Achievement
percentage during the
year
1 Existence of LED unit None N/A N/A
2 Percentage of LED Budget
spent on LED related activities.
R5.5m R4.7m 85%
3 Existence of LED strategy Yes
4 Number of LED stakeholder
forum meetings held
3 3 100%
5 Plans to stimulate second
economy
Yes Yes 50%
6 Percentage of SMME that have
benefited from a SMME support
program
35 35 SMMEs 100%
7 Number of job opportunities
created through EPWP
1540 1540 100%
8 Number of job opportunities
created through PPP
None 55 100%
254 |Audited 2017/18 Annual Report
Chapter: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT (KPA 4)
Annual performance as per key performance indicators in financial viability
Indicator name Target set for the
year R(000)
Achievement
level during the
year R(000)
Achievement
percentage during
the year
1 Percentage expenditure of
capital budget
38% R 121 256 718 53%
Target set for the
year (35%)
R(000)
Achievement
level during the
year R(000)
Achievement
percentage during
the year vs the
operational budget
2 Salary budget as a percentage
of the total operational budget
46% R 103 474 974 34%
Target set for the
year (20% or
less) R(000)
Achievement
level during the
year R(000)
Achievement
percentage during
the year vs the
actual revenue
3 Trade creditors as a
percentage of total actual
revenue
2% R 7 001 817 3%
Target set for the
year (80% and
more) R(000)
Achievement
level during the
year R(000)
Achievement
percentage during
the year
4 Total municipal own revenue
as a percentage of the total
actual budget
23% R 27 381 100 8%
255 |Audited 2017/18 Annual Report
Target set for the
year R(000)
Achievement
level during the
year R(000)
Achievement
percentage during
the year
5 Rate of municipal consumer
debt reduction
100% R 8 420 772 41%
6 Percentage of MIG budget
appropriately spent
100% 100% 100%
7 Percentage of MSIG budget
appropriately spent
100% 100% 100%
8 AG Audit opinion Unqualified
Opinion
Unqualified
Opinion
Unqualified Opinion
9 Functionality of the Audit
Committee
Effective Effective Effective
10 Submission of AFS after the
end of financial year
31 August 2017 31 August 2017 31 August 2017
Chapter: GOOD GOVERNANCE AND PUBLIC PARTICIPATION- (KPA 5)
No Indicator name
Target set for
the year
Achievement
level during
the year
(absolute
figure)
Achievement
percentage
during the year
1 % of ward committees established
100% 100% 100%
2 % of ward committees that are functional
95% 95% 95%
3 Existence of an effective system to monitor CDWs
The Municipality does not have the effective system to monitor the CDW as they are not directly reporting to the municipality, however there are sessions that are
256 |Audited 2017/18 Annual Report
No Indicator name
Target set for
the year
Achievement
level during
the year
(absolute
figure)
Achievement
percentage
during the year
being held on a quarterly basis between the CDW, Ward Committees, Ward Councillors and COGTA public participation unit. This engagement session is trying to assist the municipality in bridging the gap between the municipality functioning and CDW reporting.
4 Existence of an IGR strategy
The municipality developed an IGR Framework that was adopted by Council in 2016 that is fully implemented and used as the Terms of Reference for the IGR Forum.
5 Effective of IGR structural meetings
The IGR structural meetings are effective. The municipality included all the scheduled dates of the IGR in the calendar of events of the municipality which was adopted by Council in May 2016. The sector departments are invited on time and some departments are consistently present in the meetings. The municipality also developed clusters aligned to the 5 KPAs which are reporting directly to the full IGR. However, there are still departments who are constantly not present, this has been uplifted to the District IGR and DIMAFO.
6 Existence of an effective communication strategy
The municipality does have the communication strategy which was used in the financial year of 2015/2016. The reviewed communication strategy was drafted in March and presented in the Council workshop held in June 2016. The municipality is intending to review the communication strategy on a yearly basis.
7 Number of mayoral imbizos conducted
32 wards
3 (in all 3 units, all 32 wards participated)
100%
8 Existence of a fraud prevention mechanism
The municipality has developed a fraud prevention plan in the financial year under review.
Risk Management committee is in place, and is chaired by the independent person.